In an update on Tuesday, NextDecade said that once the financing arrangements are finalized, it expects to make a positive FID (final investment decision) on Train 4.
The company expects to finance the construction of the train utilizing a combination of debt and equity funding.
In connection with consummating the Rio Grande Phase 1 equity joint venture, the company’s equity partners each have options to invest in Train 4 equity, which, if exercised, would provide approximately 60 percent of the equity funding required for Train 4.
NextDecade has finalized 20-year LNG SPAs totaling 4.6 mtpa of LNG with Adnoc, Aramco, and TotalEnergies in support of the fourth train.
Most recently, TotalEnergies exercised its option to buy 1.5 mtpa of LNG for 20 years from the planned fourth train.
NextDecade recently also signed a 20-year SPA with Saudi Arabia’s energy behemoth Aramco.
In addition, NextDecade signed a $4.3 billion EPC contract with Bechtel last year for Train 4 and related infrastructure.
In January 2025, the company requested a pricing refresh under the Train 4 EPC contract, which is in process and is expected to be completed in the second quarter of 2025, it said.
NextDecade is currently building three trains at the site located on the north shore of the Brownsville Ship Channel in south Texas.
In July 2023, NextDecade took the final investment decision on the first three Rio Grande trains and completed a $18.4 billion project financing.
NextDecade awarded the $12 billion EPC contract to Bechtel, and it officially kicked off work on the plant in October 2023.
The firm also closed a joint venture agreement for the first phase which included about $5.9 billion of financial commitments from Global Infrastructure Partners (GIP), GIC, Mubadala, and TotalEnergies.
NextDecade holds equity interests in the Phase 1 joint venture that entitle it to receive up to 20.8 percent of the distributions of available cash during operations.
Phase 1, with nameplate liquefaction capacity of 17.6 mtpa, has 16.2 mtpa of long-term binding LNG sale and purchase agreements.
NextDecade said in the update that the overall project completion percentage for Trains 1 and 2 and the common facilities of the Rio Grande LNG facility was 42.8 percent as of the end of March, which is in line with the schedule under the EPC contract.
Within this project completion percentage, engineering was 87.9 percent complete, procurement was 76.3 percent complete, and construction was 14.1 percent complete.
According to NextDecade, the overall project completion percentage for Train 3 of the Rio Grande LNG facility was 17.8 percent, which is also in line with the schedule under the EPC contract.
Within this project completion percentage, engineering was 41.9 percent complete, procurement was 37.2 percent complete, and construction was 0.8 percent complete.
NextDecade said it is also progressing the development and commercialization of Train 5.
TotalEnergies holds an LNG purchase option for 1.5 mtpa for Train 5, and the Rio Grande Phase 1 equity partners have options to invest in Train 5 equity which are identical to their options to participate in Train 4 equity.
In addition, NextDecade announced plans in March to build up to five more trains at the Rio Grande LNG facility, bringing its total expected LNG production capacity under construction or in development to 48 mtpa.
NextDecade expects to pre-file with the US Federal Energy Regulatory Commission (FERC) for Train 6 this year and will provide a permitting timeline for Trains 7 and 8 later this year.
Train 6, with expected LNG production capacity of about 6 mtpa, is being developed inside the existing levee at the site and adjacent to Trains 1 through 5.
Trains 7 and 8, with a total expected LNG production capacity of about 12 mtpa, are being developed on the site outside of the existing levee.
Energy News Beat