NEXT - SocGen exits NextDecade's Rio Grande LNG project over ESG concerns

2023-03-28 14:52:08 ET

French bank Société Générale said Tuesday it pulled out of NextDecade's ( NASDAQ: NEXT ) Rio Grande LNG project in Texas last year, Reuters reported, a move that could help explain the project's repeated delays.

As the project's financial adviser, Société Générale had been the lead bank in the financing of ~$11.5B for the liquefied natural gas plant before exiting the role early in 2022.

Without commenting on the specific decision, SocGen pointed to its climate commitments, which include ending all LNG financing where the project is not aligned with the bank's environmental, social and governance goals.

NextDecade ( NEXT ) has signed customer agreements for ~70% of initial capacity for Rio Grande LNG Phase 1, but it said recently it now expects a final investment decision by the end of this year's Q2, a delay from its previous timetable for a Q1 FID .

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