The official word finally came in late June with the announcement that Houston-based NextDecade was building an $18 billion-plus liquefied natural gas plant at the Port of Brownsville.

For port executives and community at-large leadership, the announcement was a combination of relief and elation in definitively knowing they overcame all obstacles and last-minute legal challenges. Site work began the same day of the announcement. The dirt started moving on the port’s northside by state Highway 48 where the Rio Grande LNG plant will sit.

A celebration took place on Aug. 17 at the Brownsville Special Events Center to commemorate the years-long process that concluded with a successful ending point. The $18.4 billion investment to build the LNG plant at the Port of Brownsville was described as the single largest private sector project in recent Texas history. The West Texas natural gas to cool down to liquid form at Rio Grande LNG will ship to points around the world. Europe and Asia are the most likely destinations.

“This plant will put Brownsville on the global industrial map,” said Paul Marsden, the president of Bechtel Energy, which has been contracted to build the Brownsville LNG plant. “The product made here will provide clean energy around the world.”

Wide-Reaching Impact

The economic impact of the project will be immediate.

Bechtel will need at least 5,000 workers to build the plant on the 1,000-acre site. Marsden said Bechtel has a commitment to slotting at least 35 percent of the construction workforce for local residents. A good portion of the supply and vendor chain to construct the plant will come from local sources, Marsden said. This includes welders, electricians, plumbers, and meals and food providers.

“We intend to get as much as we can from the local supply chain,” he said. “We want everyone to participate to the maximum extent possible. We’re going to build a diverse supply chain.”

It will take about three years to build the plant, which will be located east of the port’s fishing harbor. The port’s chief executive officer, Eduardo Campirano, has emphasized the LNG plant will not have the refinery look seen in the ship channels of Houston and Corpus Christi. Renderings of the LNG plant in Brownsville give the appearance of a heavy industrial plant minus the exhaust stacks of a refinery. Also missing are the flickering of flames atop tall stacks.

At the Aug. 17 event, Campirano lauded the range of local services that will be needed to construct what he called a 32-to-36-month project.

“I don’t know if we can get our heads around it yet,” he said. “Pipefitters, welders, electricians, janitorial services, it’s going to be across the board. This is transformational.”

Beyond the construction phase, Campirano expressed confidence that Rio Grande LNG will transition to a mostly local permanent workforce. It’s estimated the plant will have at least 400 permanent workers. Campirano emphasized that what is now under construction is just the first of three phases planned for NextDecade’s LNG plant at the port. 

“This project has a six-to-eight-year horizon,” he said. “It’s not a one and done.”

A Long Road

The chief executive officer of NextDecade recalled how long it had been since he first approached the Port of Brownsville about the possibility of constructing an LNG plant.

“It started eight years ago,” said Matt Schatzman, who is also NextDecade’s chairman. 

To get from those origins in 2015 to the recent construction announcement meant getting through legal and regulatory challenges. Port Isabel sued the Brownsville Navigation District. The city alleged lease agreements with liquefied natural gas terminal developers were approved without sufficient environmental analysis. A group of environmental groups made the same sort of claims. They contended an LNG plant at the port would cause extensive damage to wildlife habitat in the area. NextDecade also had to get the necessary permitting and approvals from the U.S. Corp of Engineers and the Federal Energy Regulatory Commission. 

All of those issues took eight years to resolve. Then there was the final piece. It involved securing private sector commitments from overseas companies that they would purchase product from a Rio Grande LNG plant for years to come. The last of those commitments came in June 2023. Looking out over a happy audience at the Special Events Center, Schatzman raised a glass of wine to make a toast. He also expressed gratitude to those gathered for their years-long support.

“We’re going to do right by the Brownsville community,” he said. “That comes first for us.”

Campirano took it all in. It was a crowning achievement in capping many years of being a chief executive for public and private sector entities in the Valley. The port director deflected any personal credit. He states it took the efforts of many county and local leaders, including the support of U.S. Rep. Vicente Gonzalez who urged federal agencies to move on the project.

“The world will know where Brownsville, Texas is, and more importantly, where the Rio Grande Valley is,” he said.