NextDecade secures equity commitments for fourth Rio Grande LNG train

NextDecade said in an SEC filing on Monday that its units have entered into subscription agreements with subsidiaries of TotalEnergies and GIP.

Under the agreements, TotalEnergies will provide up to $300 million for a 10 percent stake in the Train 4 joint venture, according to NextDecade.

On the other hand, GIP will provide up to $1.5 billion for a 50 percent stake in the Train 4 JV, with the economic interest reducing to 30 percent upon the achievement of certain returns on its investment in the project, NextDecade said.

NextDecade, via its units, will provide up to approximately $1.2 billion to finance the Train 4 project in exchange for a 40 percent equity interest in the JV, with NextDecade’s economic interest increasing to 60 percent upon the achievement by GIP of certain returns on its investment in the project.

“The closing of the transactions contemplated by the subscription agreements is conditioned upon the achievement of certain closing conditions, including the absence of material and adverse changes related to the Train 4 project, the execution of suitable definitive financing documentation, and the taking of a final investment decision on the Train 4 project,” NextDecade said.

FID in September

NextDecade recently said that it plans to take final investment decisions to build the fourth and fifth trains at the Rio Grande LNG facility in September.

The company said in its second-quarter business update that it expects to achieve a positive FID on Train 4 by mid-September 2025, subject to obtaining adequate financing.

It 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 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.