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NextDecade said in its second-quarter business update on Friday that it expects to achieve a positive FID on Train 4 by mid-September 2025, subject to obtaining adequate financing.
The company also said it continues to pursue financing for Train 5 and, subject to obtaining appropriate commercial support and financing, is targeting FID by mid-September 2025.
In July 2023, NextDecade took the final investment decision on the first three Rio Grande LNG trains and completed a $18.4 billion project financing.
Phase 1, with a nameplate liquefaction capacity of 17.6 mtpa, has 16.2 mtpa of long-term binding LNG sale and purchase agreements.
Additionally, the firm closed a joint venture agreement for the first phase, which included approximately $5.9 billion in financial commitments from Global Infrastructure Partners (GIP), GIC, Mubadala, and TotalEnergies.
The deal also included options for the fourth and fifth trains.
In June, NextDecade and compatriot Bechtel finalized EPC contracts worth $9.09 billion for the construction of the fourth and fifth trains and related infrastructure at the Rio Grande LNG facility in Texas.
Construction update
Under the EPC contracts with Bechtel, Phase 1 progress is tracked for Train 1, Train 2, and the common facilities on a combined basis and Train 3 on a separate basis.
As of June, the overall project completion percentage for Trains 1 and 2 and the common facilities of the Rio Grande LNG Facility was 48.3%, which is in line with the schedule under the EPC contract, NexDecade said.
Within this project completion percentage, engineering was 91.9 percent complete, procurement was 80.6 percent complete, and construction was 21.2 percent complete.
The overall project completion percentage for Train 3 of the Rio Grande LNG facility was 22.7 percent, which is also in line with the schedule under the EPC contract.
Within this project completion percentage, engineering was 55.7 percent complete, procurement was 45.5 percent complete, and construction was 2.2 percent complete.
Fourth train
NextDecade has completed commercialization of Train 4 and has executed 20-year LNG SPAs totaling 4.6 mtpa of LNG with Adnoc Aramco, and TotalEnergies in support of Train 4.
The Company launched the financing process for Train 4 in June 2025 and expects to finance construction of Train 4 using a combination of debt and equity funding at the project level.
NectDecade said it is in the process of entering into a term loan bank facility at Rio Grande LNG Train 4 for the debt portion of the funding.
The company’s Phase 1 equity partners each have options to invest in Train 4 equity which, if exercised, would provide 60 percent of the equity funding required for Train 4.
NexDecade expects the Phase 1 equity partners to exercise their options to participate in Train 4 equity.
Fifth train
The company is also progressing Train 5 toward FID, and the commercialization process is underway for the train.
In May 2025, NexDecade announced a 20-year LNG SPA with JERA for 2 mtpa of LNG in support of Train 5.
The company is targeting an additional 2.5 mtpa of long-term contracts to support a positive FID of Train 5.
NexDecade began the financing process for Train 5 in the second quarter 2025 and expects to finance construction of Train 5 using a combination of debt and equity funding at the project level.
The Company expects to enter into bank facilities at Rio Grande LNG Train 5 for the debt portion of the funding.
Certain of the Company’s Phase 1 equity partners have options to invest in Train 5 equity, which if exercised, would provide 50 percent of the equity funding required for Train 5.
Inclusive of these options, NextDecade currently expects to fund the balance of the equity commitments for Train 5, and to have an initial economic interest of up to 50 percent in Train 5, which will increase to up to 70 percent after its equity partners achieve certain returns on their investments in Train 5.
Additional trains
NextDecade is developing and beginning the permitting process for additional liquefaction capacity at the Rio Grande LNG Facility site beyond Trains 1 through 5.
Trains 6 through 8 are wholly-owned by NextDecade and are cumulatively expected to increase the company’s total liquefaction capacity by approximately 18 mtpa once constructed and placed into operation.
Train 6 is being developed inside the existing levee at the Rio Grande LNG Facility site and adjacent to Trains 1 through 5.
Moreover, the Company expects to pre-file an application with FERC for Train 6 in 2025 and a full application with FERC in early 2026.
The company is evaluating multiple areas on the site for the development of Trains 7 and 8 and expects to provide an update on the expected permitting timeline for Trains 7 and 8 in 2025.