Massive liquefied natural gas export facility investment announced for Brownsville, Texas

Transformative Project: Generating Employment and Opportunities in the Region

The Rio Grande Valley is set to receive the largest proposed investment in the United States for a liquefied natural gas (LNG) export facility, to be located at the Port of Brownsville, Texas, with a budget exceeding $18.4 billion in its first phase alone.

This monumental project is poised to have a significant impact on the entire region by projecting up to 5,000 new jobs. Moreover, it marks the beginning of a new era in economic development, opening doors for fresh investments in the energy sector, as explained by Eduardo Campirano, CEO of the Port of Brownsville, in an interview with Mexico Industry.

The LNG plant, named Rio Grande LNG, is being undertaken by NextDecade, a company that has already commenced the construction of three liquefaction trains. "The benefit of this project, which boasts the largest financing in U.S. history, will extend to the entire industry, particularly the energy sector, as it involves liquefied natural gas that will be exported worldwide. Additionally, thousands of jobs will depend on it, and it will strengthen other businesses operating between Mexico and the United States," Campirano noted.

Mexico: Top Trading Partner

Currently, Mexico is the United States' top trading partner, and from the Port of Brownsville, international trade processes are intensified, thanks to direct connections and international treaties that streamline the export and import of various types of goods.

The anticipated increase in port activity resulting from NextDecade's operations presents new opportunities and advantages, primarily in two investment sectors: the energy industry and logistics.

Campirano emphasized that the impact of the new Rio Grande LNG plant will benefit both nations, with the Port of Matamoros, Tamaulipas, being one of the closest routes. "The commercial relationship between the Port of Brownsville and Mexico is genuine and highly prosperous. Collaborative efforts between the two countries have forged strong relationships that allow us to continually work together and support each other. With NextDecade, commercial interest will further increase, especially considering we have operating companies in both countries," Campirano stressed.

Impact on Texas' GDP

In the official announcement, the Port of Brownsville detailed that NexDecade estimates contributions of up to $6 billion in Cameron County as part of the Gross Domestic Product (GDP), around $23 billion for the state of Texas, and up to $35 billion for the United States.

More than 984 acres (398.211 hectares) will be utilized for this project. During Phase 1, the liquefaction capacity will be 17.6 million metric tons per annum (MTPA). "NextDecade's plant will be a catalyst for investment, not only in Brownsville but throughout the Rio Grande Valley area; its impact will be immense," added Campirano.

Phase 1 of the new Rio Grande LNG plant commenced construction in July 2023, and so far, approximately 16.2 MTPA of its production is under binding agreements for long-term purchase and sale with companies including TotalEnergies, Shell NA LNG LLC, ENN LNG Pte Ltd, Engie S.A., ExxonMobil, LNG Asia Pacific, Guangdong Energy Group, China Gas Hongda Energy Trading Co., Galp Trading S.A., and Itochu Corporation.

Key Investment Details

Investment: Over $18.4 billion in Phase 1.

Land: 984 acres (398.211 hectares) in development.

Phase 1 includes 3 liquefaction trains and a capacity of 17.6 MTPA.