NextDecade’s subsidiaries have finalised an updated engineering, procurement and construction (EPC) contract with Bechtel Energy for Train 4 and signed a new EPC agreement for Train 5 at its Rio Grande LNG project in Brownsville, Texas, US.
The Rio Grande LNG project is designed to include up to five liquefaction trains, each capable of producing approximately 5.4 million tonnes per annum (mtpa) of liquefied natural gas (LNG).
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The revised EPC contract for Train 4 is valued at approximately $4.77bn. The pricing remains valid through 15 September 2025.
Additional estimated expenses including owner’s costs, contingencies, financing fees and interest during construction are expected to range between $1.8bn and $2bn.
For Train 5, NextDecade has entered into a separate EPC agreement with Bechtel valued at approximately $4.32bn.
The pricing for this contract is also valid through 15 September 2025, with similar estimated additional project costs of $1.8bn–2bn.
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By GlobalDataCommercial agreements for Train 4 have been completed, and the company has started securing financing. A final investment decision (FID) is anticipated before the pricing deadline.
For Train 5, NextDecade has signed a 20-year LNG sale and purchase agreement with JERA for 2mtpa and is working to secure contracts for an additional 2.5mtpa.
Financing efforts for Train 5 are in progress, with a targeted FID also expected before the EPC pricing validity expires.
In March, Baker Hughes entered into a framework agreement with NextDecade to supply gas turbine and refrigerant compressor technology for Trains 4 through 8 at the Rio Grande LNG facility in Texas.
Under the agreement, Baker Hughes will also provide maintenance services for the equipment packages delivered as part of the project.
