SocGen Says It Has Pulled Out of NextDecade’s Rio Grande LNG Project
(Reuters) — Societe Generale pulled out of Texas-based energy company NextDecade's Rio Grande LNG project last year, the French bank disclosed for the first time on Tuesday, in news that could help explain the project's repeated delays.
Without commenting on this specific decision, a SocGen spokesperson pointed to its climate commitments, which include ending all LNG financing where the project is not aligned with the bank's human rights and environmental, social and governance goals.
As the project's mandated financial adviser, SocGen had been the lead bank in the financing of some $11.5 billion for the LNG plant before exiting this role in the first quarter of 2022.
NextDecade did not reply to a request for comment.
Banks across the world are under pressure from activists and some investors to do more to help tackle climate change. Groups and representatives of Indigenous tribes that have campaigned against the project cheered SocGen's announcement.
NextDecade has repeatedly pushed back the projected date for a financial go-ahead on the first phase of Rio Grande LNG, this month setting a new target for the end of the second quarter.
The company holds a contract with construction giant Bechtel to build the first three of its five liquefaction units at an estimated cost of $11.4 billion, subject to revision before a final investment decision, it said this year.
NextDecade has signed long-term purchase agreements with potential customers including Exxon Mobil, China Gas Holdings, GALP, Itochu Corp. and Engie.
Related News
Related News
- 1,000-Mile Pipeline Exit Plan by Hope Gas Alarms West Virginia Producers
- Valero Plans to Shut California Refinery, Takes $1.1 Billion Hit
- Three Killed, Two Injured in Accident at LNG Construction Site in Texas
- Greenpeace Ordered to Pay $667 Million to Energy Transfer Over Dakota Access Pipeline Protests
- Boardwalk’s Texas Gas Launches Open Season for 2 Bcf/d Marcellus-to-Louisiana Pipeline Expansion
- New Alternatives for Noise Reduction in Gas Pipelines
- Construction Begins on Ghana's $12 Billion Petroleum Hub, But Not Without Doubts
- Missouri Loses Control Over 1.5 Million-Mile Gas Pipeline Network as Feds Step In
- Greenpeace Ordered to Pay $667 Million to Energy Transfer Over Dakota Access Pipeline Protests
- DOE Considers Cutting Over $1.2 Billion in Carbon Capture Project Funding
Comments