NextDecade, McDermott end deal for Rio Grande LNG construction

|By:, SA News Editor

McDermott (NYSE:MDR) fell 4.9% in today's trade after NextDecade said it would take another year to secure a contractor to build its Rio Grande LNG export terminal in Texas after deciding not to move forward with an agreement with MDR.

NextDecade says it will submit the job to a competitive bidding process, citing MDR's need to secure a joint venture partner in order to successfully execute and financially guarantee an LNG project of Rio Grande LNG’s size and scope.

An agreement between NextDecade and MDR once had been expected by the end of June, but an EPC contract is now expected to be reached in Q3 2019, prior to a final investment decision on the project; NextDecade says it has invited Bechtel and Fluor (NYSE:FLR) to make bids, and MDR can bid if it finds a joint venture partner.

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