NextDecade Corporation (NextDecade) (NASDAQ: NEXT) and Enbridge
Inc. (Enbridge) (TSX: ENB) (NYSE: ENB) announced today that they
have entered into a definitive agreement whereby Enbridge will
acquire Rio Bravo Pipeline Company, LLC (RBPL) from NextDecade for
a cash purchase price not to exceed $25 million, with $15 million
paid at closing and the balance paid upon NextDecade’s reaching a
positive final investment decision (FID) on its Rio Grande LNG
export facility in the Port of Brownsville, Texas.
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Upon closing of the transaction, Enbridge will own one hundred
percent of RBPL and assume all responsibility for the development,
financing, construction, and operations of the Rio Bravo Pipeline.
NextDecade will continue to be responsible for the development,
financing, construction, and operations of its Rio Grande LNG
export facility.
In addition, Enbridge and NextDecade have negotiated a precedent
agreement, to be executed at closing, whereby NextDecade will
retain its rights to the natural gas firm transportation capacity
on the Rio Bravo Pipeline for a term of at least twenty years to
supply NextDecade’s Rio Grande LNG export facility.
“This agreement with Enbridge further enhances our commitment to
our global LNG customers, natural gas suppliers and other
stakeholders to deliver our Rio Grande LNG project on time and on
budget,” said Matt Schatzman, NextDecade’s Chairman and Chief
Executive Officer. “As one of North America’s leading energy
infrastructure companies, Enbridge brings extensive natural gas
pipeline experience to execute the Rio Bravo Pipeline, and we are
delighted to have them involved in supporting the delivery of our
Rio Grande LNG project.”
“We are excited to move forward with this transaction,” said
Bill Yardley, Enbridge’s Executive Vice President and President of
Gas Transmission and Midstream. “Enbridge’s commitment to the
development of the Rio Bravo Pipeline in support of NextDecade’s
Rio Grande LNG project further strengthens our ability to serve the
expanding LNG export market and fits squarely within our low-risk
business model.”
The Rio Bravo Pipeline is designed to transport up to 4.5
billion cubic feet per day of natural gas from the Agua Dulce
supply area to NextDecade’s Rio Grande LNG project in Brownsville,
Texas. In November 2019, the Federal Energy Regulatory Commission
(FERC) issued an order authorizing the siting, construction, and
operation of NextDecade’s Rio Grande LNG project and the Rio Bravo
Pipeline. In January 2020, FERC issued a final order on rehearing
for the Rio Grande LNG project and the Rio Bravo Pipeline.
The agreement has been approved by the Boards of Directors of
both companies. Subject to the satisfaction of certain conditions,
the transaction is expected to close in the first quarter of
2020.
About NextDecade Corporation
NextDecade is a LNG development company focused on LNG export
projects and associated pipelines in Texas. NextDecade intends to
develop the largest LNG export solution linking Permian Basin
associated gas to the global LNG market, creating value for
producers, customers, and stockholders. Its portfolio of LNG
projects includes the 27 mtpa Rio Grande LNG export facility in
Brownsville, Texas and the 4.5 Bcf/d Rio Bravo Pipeline that would
transport natural gas from the Agua Dulce area to Rio Grande LNG.
NextDecade’s common stock is listed on the Nasdaq Stock Market
under the symbol “NEXT.” NextDecade is headquartered in Houston,
Texas. For more information, visit www.next-decade.com.
NextDecade Forward-Looking Information
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws. The words
“anticipate,” “contemplate,” “estimate,” “expect,” “project,”
“plan,” “intend,” “believe,” “may,” “might,” “will,” “would,”
“could,” “should,” “can have,” “likely,” “continue,” “design” and
other words and terms of similar expressions are intended to
identify forward-looking statements, and these statements may
relate to the business of NextDecade and its subsidiaries. These
statements have been based on NextDecade’s current assumptions,
expectations, and projections about future events and trends and
involve a number of known and unknown risks, which may cause actual
results to differ materially from expectations expressed or implied
in the forward-looking statements. These risks include
uncertainties about progress in the development of NextDecade’s LNG
liquefaction and export projects and the timing of that progress;
government approval of construction and operation of NextDecade’s
Rio Grande LNG and Rio Bravo Pipeline projects terminal at the Port
of Brownsville in southern Texas (the “Terminal”) and an associated
137-mile pipeline to supply gas to the Terminal (the “Pipeline” and
together with the Terminal, the “Project”) and the timing of that
approval; the successful completion of the Project by third-party
contractors; our ability to secure additional debt and equity
financing in the future to complete the Project; the accuracy of
estimated costs for the Project; statements that the Project, when
completed, will have certain characteristics, including amounts of
liquefaction capacities; NextDecade’s anticipated competitive
advantage and technological innovation which may render its
anticipated competitive advantage obsolete; the global demand for
and price of natural gas (versus the price of imported LNG); the
availability of LNG vessels worldwide; negotiations for the
Terminal site lease and right-of-way options for the Pipeline
route; changes in legislation and regulations relating to the LNG
industry, including environmental laws and regulations that impose
significant compliance costs and liabilities; risks related to
doing business in and having counterparties in foreign countries;
changes adversely affecting the business in which NextDecade is
engaged; management of growth; general economic conditions;
NextDecade’s ability to generate cash; compliance with
environmental laws and regulations; the result of future financing
efforts and applications for customary tax incentives; and other
matters discussed in the “Risk Factors” section of NextDecade’s
Annual Report on Form 10-K for the year ended December 31, 2018 and
other subsequent reports filed with the Securities and Exchange
Commission, all of which are incorporated herein by reference.
Additionally, any development of the Project remains contingent
upon completing required commercial agreements, acquiring all
necessary permits and approval, securing all financing commitments
and potential tax incentives, achieving other customary conditions
and making a final investment decision to proceed. The
forward-looking statements in this press release speak as of the
date of this release. Although NextDecade believes that the
expectations reflected in these forward-looking statements are
reasonable, it can give no assurance that the expectations will
prove to be correct. NextDecade may from time to time voluntarily
update its prior forward-looking statements, however, it disclaims
any commitment to do so except as required by securities laws.
About Enbridge Inc.
Enbridge Inc. is a leading North American energy infrastructure
company. We safely and reliably deliver the energy people need and
want to fuel quality of life. Our core businesses include Liquids
Pipelines, which transports approximately 25 percent of the crude
oil produced in North America; Gas Transmission and Midstream,
which transports approximately 20 percent of the natural gas
consumed in the U.S.; and Utilities and Power Operations, which
serves approximately 3.7 million retail customers in Ontario and
Quebec, and generates approximately 1,750 MW of net renewable power
in North America and Europe. The Company's common shares trade on
the Toronto and New York stock exchanges under the symbol ENB. For
more information, visit www.enbridge.com
Enbridge Forward-Looking Information
Forward-looking information, or forward-looking statements, have
been included in this press release to provide information about
Enbridge and its subsidiaries and affiliates, including
management's assessment of Enbridge and its subsidiaries' future
plans and operations. This information may not be appropriate for
other purposes. Forward-looking statements are typically identified
by words such as ''anticipate'', ''expect'', ''project'',
''estimate'', ''forecast'', ''plan'', ''intend'', ''target'',
''believe'', "likely" and similar words suggesting future outcomes
or statements regarding an outlook. Forward-looking information or
statements included in this press release include, but are not
limited to, statements with respect to NextDecade’s Rio Grande LNG
and Rio Bravo Pipeline projects terminal at the Port of Brownsville
in southern Texas (the “Terminal”) and an associated 137-mile
pipeline to supply gas to the Terminal (the “Pipeline” and together
with the Terminal, the “Project”), including the acquisition of
RBPL by Enbridge; the benefits, risks, costs and timing of the
transaction and the Project; and the expected capacity and
characteristics of the Pipeline.
Although Enbridge believes these forward-looking statements are
reasonable based on the information available on the date such
statements are made and processes used to prepare the information,
such statements are not guarantees of future performance and
readers are cautioned against placing undue reliance on
forward-looking statements. By their nature, these statements
involve a variety of assumptions, known and unknown risks and
uncertainties and other factors, which may cause actual results,
levels of activity and achievements to differ materially from those
expressed or implied by such statements. Assumptions regarding the
expected supply of and demand for crude oil, natural gas and LNG,
and the prices of these commodities, are material to and underlie
all forward-looking statements, as they may impact current and
future levels of demand for Enbridge's services and for the
Project. Similarly, exchange rates, inflation and interest rates
impact the economies and business environments in which Enbridge
operates and may impact levels of demand for Enbridge’s services
and the Project and cost of inputs and are therefore inherent in
all forward-looking statements. Due to the interdependencies and
correlation of these macroeconomic factors, the impact of any one
assumption on a forward-looking statement cannot be determined with
certainty. The most relevant assumptions associated with
forward-looking statements on announced projects and projects under
construction, including estimated completion dates and expected
capital expenditures, include the following: the impact of
customer, government and regulatory approvals on construction and
in-service schedules and cost recovery regimes; the availability
and price of labour and construction materials; the effects of
inflation and foreign exchange rates on labour and material costs;
the effects of interest rates on borrowing costs; the impact of
weather; and the ability of our joint venture partners to complete
and finance proposed projects, including the Terminal.
Enbridge's forward-looking statements are subject to risks and
uncertainties, including, but not limited to those risks and
uncertainties discussed in this press release and in Enbridge's
other filings with Canadian and United States securities
regulators. The impact of any one risk, uncertainty or factor on a
particular forward-looking statement is not determinable with
certainty as these are interdependent and Enbridge's future course
of action depends on management's assessment of all information
available at the relevant time. Except to the extent required by
applicable law, Enbridge assumes no obligation to publicly update
or revise any forward-looking statements made in this news release
or otherwise, whether as a result of new information, future events
or otherwise. All subsequent forward-looking statements, whether
written or oral, attributable to Enbridge or persons acting on
Enbridge's behalf, are expressly qualified in their entirety by
these cautionary statements.
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