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NextDecade said late on Tuesday that it has closed financial transactions to fully fund Train 4 and related infrastructure, and issued a full notice to proceed to Bechtel for the unit.
Train 4 has expected LNG production capacity of approximately 6 mtpa, bringing the total expected LNG production capacity under construction at Rio Grande LNG to approximately 24 MTPA.
The unit is commercially supported by 4.6 mtpa of 20-year LNG sale and purchase agreements (SPAs) with ADNOC, TotalEnergies, and Aramco.
The guaranteed substantial completion date for Train 4, as well as the date of first commercial delivery (DFCD) under the Train 4 LNG SPAs, is anticipated in the second half of 2030.
$6.7 billion
NextDecade said project costs for Train 4 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.
Last month, NextDecade secured about $1.8 billion in equity commitments from TotalEnergies and Global Infrastructure Partners to finance the construction of the fourth train.
To fully fund the expected costs for Train 4 and related infrastructure, the company closed on approximately $6.7 billion in committed financing.
This includes $3.85 billion term loan facility at Rio Grande LNG Train 4, $1.13 billion in equity commitments from NextDecade, and $1.70 billion in equity commitments from partners Global Infrastructure Partners, a part of BlackRock, GIC, Mubadala, and TotalEnergies.
NextDecade said it has received $98 million at financial close from Rio Grande LNG Train 4 for development costs and management services, and an additional $50 million will be received on September 9, 2026.
The company has an initial economic interest of 40 percent in Train 4, which will increase to 60 percent after the financial investors achieve certain returns on their investments in Train 4, it said.
Train 5
Additionally, the company continues to progress Train 5 at Rio Grande LNG toward FID.
In June, NextDecade entered into a lump-sum, turnkey EPC contract with Bechtel for Train 5 and related infrastructure.
In September, the company extended the pricing validity period under the Train 5 EPC contract through November 15, 2025, to accommodate the company’s current expected timeline for achieving a positive FID on Train 5.
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.
NextDecade expects to finance construction of Train 5 using approximately 60 percent debt and 40 percent 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.
NextDecade noted the financial investors 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 remaining 50 percent of the equity commitments for Train 5 and to have 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.
The company expects to achieve a positive FID on Train 5 and related infrastructure, subject to obtaining adequate financing, in the fourth quarter of 2025.
Based on this timing, the guaranteed substantial completion date for Train 5, as well as DFCD under the Train 5 SPAs, is anticipated in the first half of 2031, NextDecade said.
TotalEnergies takes direct stake
French energy giant TotalEnergies said in a separate statement that it has signed agreements with NextDecade to take a 10 percent stake in the joint venture developing Train 4 of Rio Grande LNG.
In addition to the 10 percent held directly, TotalEnergies will hold indirectly next to 7 percent in this Train 4 as a 17.1 percent shareholder of NextDecade, it said.
(Updated with a TotalEnergies statement.)