NextDecade has reached a significant milestone with a positive final investment decision (FID) for Train 4 of the Rio Grande LNG project near Brownsville, Texas, US.
The company has finalised financial arrangements to secure complete funding for Train 4 and its associated infrastructure.
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Additionally, a full notice to proceed has been issued for Train 4 under a lump-sum, turnkey engineering, procurement and construction (EPC) contract.
NextDecade chairman and CEO Matt Schatzman said: “The global call for additional natural gas infrastructure continues to be strong, and we are well positioned to meet this growing demand for cleaner energy, with approximately 24 million tonnes per annum (mtpa) of expected LNG [liquefied natural gas] production capacity currently under construction, Train 5 nearing a positive FID and significant additional expansion capacity under development at the Rio Grande LNG site.”
Train 4 is set to have an LNG production capacity of around 6mtpa, which will bring the aggregate capacity being developed at Rio Grande LNG to roughly 24mtpa.
This expansion is commercially backed by 20-year LNG sale and purchase agreements (SPAs) with major industry players including Adnoc, TotalEnergies and Aramco, totalling 4.6mtpa.
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By GlobalDataIt is anticipated that Train 4 will be substantially completed by a guaranteed date, with the date of first commercial delivery (DFCD) under the Train 4 LNG SPAs projected for the latter half of 2030.
Expenses for Train 4 and associated infrastructure are anticipated to be roughly $6.7bn.
Upon financial close, NextDecade garnered $98m from Rio Grande LNG Train 4 for establishment costs and management services. An additional $50m is set to be received on 9 September 2026.
The company initially holds a 40% economic interest in Train 4, which is set to increase to 60% once financial investors achieve certain returns.
To finance its share of Train 4 equity funding commitments, NextDecade secured $1.33bn in term loans without affecting the common shares outstanding.
Meanwhile, the commercialisation of Train 5 is complete, backed by 4.5mtpa of 20-year LNG SPAs with JERA, EQT and ConocoPhillips.
In June, NextDecade signed a lump-sum, turnkey EPC contract with Bechtel for Train 5 and its related infrastructure.
The pricing validity period under the Train 5 EPC contract was extended in September 2025 to align with the expected timeline for achieving a positive FID on Train 5, anticipated in the fourth quarter of 2025.
The company plans to fund the construction of Train 5 with a mix of around 60% debt and 40% equity at the project level.
Subject to adequate financing, a positive FID on Train 5 and related infrastructure is expected by the end of 2025, with a guaranteed substantial completion date and DFCD for Train 5 forecasted in the first half of 2031.
