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NectDecade said late on Thursday it has closed financial transactions to fully fund Train 5 and related infrastructure, and issued a full notice to proceed to Bechtel for the unit.
This FID comes just over a month after NextDecade made a final investment decision on the fourth train.
Train 5 has expected LNG production capacity of approximately 6 million tonnes per annum (mtpa), bringing the total expected LNG production capacity under construction at Rio Grande LNG to approximately 30 mtpa.
Train 5 is commercially supported by 4.5 mtpa of 20-year LNG sale and purchase agreements (SPAs) with JERA, EQT Corporation, and ConocoPhillips.
NexdDecade said the guaranteed substantial completion date for Train 5, as well as the date of first commercial delivery (DFCD) under the Train 5 LNG SPAs, is anticipated in the first half of 2031.
$6.7 billion
According to NextDecade, project costs for Train 5 and related infrastructure are expected to total approximately $6.7 billion, including EPC costs, owner’s costs, contingencies, financing fees and interest during construction, and other costs.
To fully fund the expected costs for Train 5 and related infrastructure, the company closed on approximately $6.7 billion in committed financing.
Moreover, this includes $3.59 billion term loan facility at Rio Grande LNG Train 5 LLC, $0.50 billion private placement notes at Rio Grande LNG Train 5, $1.29 billion in equity commitments from NextDecade, and $1.29 billion in equity commitments from partners Global Infrastructure Partners, a part of BlackRock (GIP), GIC, and Mubadala Investment.
TotalEnergies previously said it would not take part in the fifth train.
NextDecade received $117 million at financial close from Rio Grande LNG Train 5, LLC for development costs and management services.
The US LNG developer noted that it has an initial economic interest of 50 percent in Train 5, which will increase to 70 percent after the financial investors achieve certain returns on their investments in Train 5.
NextDecade Train 5 equity commitment
NextDecade said it has used $233 million of cash on hand and entered into a total of $1.33 billion in term loans to finance its portion of Train 5 equity funding commitments without a material impact to its common shares outstanding.
The FinCo Loan is a $729 million delayed draw bank facility that bears interest at SOFR plus 350 basis points.
The US LNG developer noted that commitments under the FinCo Loan are cancellable and can be prepaid without penalty.
Also, the SuperFinCo Loan is a $600 million term loan, with net proceeds disbursed at financial close.
The SuperFinCo loan bears interest at 13 percent, with interest payable in kind until one year after Train 5 completion, and is callable at par beginning in September 2030.
