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NextDecade Clears Legal Hurdle for Rio Grande LNG Project Construction
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NextDecade Corporation (NEXT - Free Report) has received a favorable ruling from the U.S. Court of Appeals for the D.C. Circuit, securing the future of its Rio Grande LNG project. The court revised its previous decision, remanding without vacatur the Federal Energy Regulatory Commission’s (FERC) order for the project’s first five liquefaction trains. This outcome ensures that construction at the Texas-based LNG facility will proceed without legal roadblocks.
The company was pleased with the court’s revised judgment and stated that the ruling will help remove uncertainties cropping from environmental and legal challenges,and allow them to focus on project construction and future expansion.
An Insight Into the Legal Challenges Faced by NEXT
In August 2024, the U.S. Court of Appeals revoked the permit issued by the FERC for the Rio Grande LNG export project. A case was filed by the Sierra Club, the City of Port Isabel, the Carrizo/Comecrudo Tribe of Texas, and Vecinos para el Bienestar de la Comunidad Costera against FERC in the D.C. Circuit Court. The Sierra Club and others argued that FERC failed to properly assess the environmental impact of the project under the National Environmental Policy Act and the Natural Gas Act. The court supported the environmentalists, stating that a supplemental environmental impact statement should have been issued by FERC during the remand process.
Strong Commercial Momentum and Expansion Plans
Situated on a 984-acre site at the Port of Brownsville, Rio Grande LNG is the largest privately funded LNG project in Texas that is set to benefit from Trump’s push to establish U.S. energy dominance. The project benefits from its proximity to the Permian Basin and Eagle Ford shale, ensuring a steady supply of natural gas with minimal weather disruptions compared to other Gulf Coast locations. The fully operational Rio Grande LNG project will have the potential to deliver enough energy to heat and cool the equivalent of nearly 34 million U.S. households annually.
With construction of Phase 1 underway, NextDecade is advancing its commercialization efforts. The company has secured long-term LNG sale and purchase agreements with ADNOC and Aramco and expects TotalEnergies to exercise its LNG purchase option. Additionally, NextDecade is set to finalize an engineering, procurement and construction contract for Train 5 in 2025.
The company is also planning further expansion, with Train 6 pre-filing expected in 2025 and full application filing in early 2026. Meanwhile, development and permitting processes for Trains 7 and 8 are in the works, positioning the Rio Grande LNG facility as a major global LNG hub.
Commitment to Low-Emission LNG Production
NextDecade’s Rio Grande LNG project stands out for its commitment to sustainability. The facility aims to reduce emissions by over 90% through a proposed carbon capture and storage (CCS) initiative. The CCS project, designed to capture and store more than 5 million metric tons of CO2 annually, aligns with the company’s goal of producing low-carbon LNG.
NEXT’s Zacks Rank and Other Key Picks
Houston, TX-based NextDecade Corporation is a development and management company of land-based and floating LNG projects primarily in the global integrated natural gas industry. Currently, NEXT has a Zacks Rank #2 (Buy).
Delek Logistics Partners owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 34.45% year-over-year growth.
Houston-based Archrock is a provider of natural gas contract compression services as well as a supplier of aftermarket services for compression equipment. The Zacks Consensus Estimate for AROC’s 2025 earnings indicates 46.67% year-over-year growth.
Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources principally in the United States. The Zacks Consensus Estimate for PROP’s 2025 earnings indicates 327.62% year-over-year growth.
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NextDecade Clears Legal Hurdle for Rio Grande LNG Project Construction
NextDecade Corporation (NEXT - Free Report) has received a favorable ruling from the U.S. Court of Appeals for the D.C. Circuit, securing the future of its Rio Grande LNG project. The court revised its previous decision, remanding without vacatur the Federal Energy Regulatory Commission’s (FERC) order for the project’s first five liquefaction trains. This outcome ensures that construction at the Texas-based LNG facility will proceed without legal roadblocks.
The company was pleased with the court’s revised judgment and stated that the ruling will help remove uncertainties cropping from environmental and legal challenges,and allow them to focus on project construction and future expansion.
An Insight Into the Legal Challenges Faced by NEXT
In August 2024, the U.S. Court of Appeals revoked the permit issued by the FERC for the Rio Grande LNG export project. A case was filed by the Sierra Club, the City of Port Isabel, the Carrizo/Comecrudo Tribe of Texas, and Vecinos para el Bienestar de la Comunidad Costera against FERC in the D.C. Circuit Court. The Sierra Club and others argued that FERC failed to properly assess the environmental impact of the project under the National Environmental Policy Act and the Natural Gas Act. The court supported the environmentalists, stating that a supplemental environmental impact statement should have been issued by FERC during the remand process.
Strong Commercial Momentum and Expansion Plans
Situated on a 984-acre site at the Port of Brownsville, Rio Grande LNG is the largest privately funded LNG project in Texas that is set to benefit from Trump’s push to establish U.S. energy dominance. The project benefits from its proximity to the Permian Basin and Eagle Ford shale, ensuring a steady supply of natural gas with minimal weather disruptions compared to other Gulf Coast locations. The fully operational Rio Grande LNG project will have the potential to deliver enough energy to heat and cool the equivalent of nearly 34 million U.S. households annually.
With construction of Phase 1 underway, NextDecade is advancing its commercialization efforts. The company has secured long-term LNG sale and purchase agreements with ADNOC and Aramco and expects TotalEnergies to exercise its LNG purchase option. Additionally, NextDecade is set to finalize an engineering, procurement and construction contract for Train 5 in 2025.
The company is also planning further expansion, with Train 6 pre-filing expected in 2025 and full application filing in early 2026. Meanwhile, development and permitting processes for Trains 7 and 8 are in the works, positioning the Rio Grande LNG facility as a major global LNG hub.
Commitment to Low-Emission LNG Production
NextDecade’s Rio Grande LNG project stands out for its commitment to sustainability. The facility aims to reduce emissions by over 90% through a proposed carbon capture and storage (CCS) initiative. The CCS project, designed to capture and store more than 5 million metric tons of CO2 annually, aligns with the company’s goal of producing low-carbon LNG.
NEXT’s Zacks Rank and Other Key Picks
Houston, TX-based NextDecade Corporation is a development and management company of land-based and floating LNG projects primarily in the global integrated natural gas industry. Currently, NEXT has a Zacks Rank #2 (Buy).
Investors interested in the energy sector might look at some other top-ranked stocks like Delek Logistics Partners, LP (DKL - Free Report) , Archrock, Inc. (AROC - Free Report) and Prairie Operating Co. (PROP - Free Report) .Delek Logistics, Archrock and Prairie currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek Logistics Partners owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 34.45% year-over-year growth.
Houston-based Archrock is a provider of natural gas contract compression services as well as a supplier of aftermarket services for compression equipment. The Zacks Consensus Estimate for AROC’s 2025 earnings indicates 46.67% year-over-year growth.
Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources principally in the United States. The Zacks Consensus Estimate for PROP’s 2025 earnings indicates 327.62% year-over-year growth.