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In August last year, NextDecade and Bechtel signed a $4.3 billion lump sum turnkey engineering, procurement, and construction (EPC) contract for the construction of the fourth Rio Grande LNG train.
NextDecade announced on Thursday that its subsidiaries have finalized a “pricing refresh” of this contract.
According to the firm, Rio Grande LNG Train 4 has agreed to pay Bechtel approximately $4.77 billion for the work under the EPC contract for Train 4.
This is $477 million more than in the August 2024 deal.
NextDecade said pricing validity under the Train 4 EPC contract extends through September 15, 2025.
NextDecade currently projects that owner’s costs, contingencies, financing fees, and interest during construction will total approximately $1.8-$2.0 billion for Train 4 and supporting infrastructure, based on current estimates and expected interest rates.
Moreover, Rio Grande LNG Train 5 has agreed to pay Bechtel approximately $4.32 billion for the work under the EPC contract for Train 5.
Pricing validity under the Train 5 EPC contract extends through September 15, 2025.
NextDecade currently projects that owner’s costs, contingencies, financing fees and interest during construction will total approximately $1.8-$2.0 billion for Train 5 and supporting infrastructure.
FID by September 15
NextDecade noted that commercialization of Train 4 is complete, and the company has started the financing process for Train 4 and related infrastructure.
Subject to obtaining adequate financing, NextDecade expects to achieve a positive final investment decision (FID) on Train 4 before the end of the pricing validity period for the Train 4 EPC contract.
NextDecade recently announced a 20-year, 2 million tonnes per annum (mtpa) LNG sale and purchase agreement (SPA) with Japan’s Jera for offtake from Train 5.
The company said it is working on commercializing an additional 2.5 mtpa under long-term LNG SPAs to support a positive FID on Train 5.
Also, the company said it has started the financing process for Train 5 and related infrastructure and, subject to obtaining appropriate commercial support and financing, is targeting FID before the end of the pricing validity period for the Train 5 EPC contract.
Rio Grande LNG
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 LNG trains and completed a $18.4 billion project financing.
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.
Phase 1, with a nameplate liquefaction capacity of 17.6 mtpa, has 16.2 mtpa of long-term binding LNG sale and purchase agreements.
In addition to these five trains, NextDecade announced plans in March to build up to five more trains at the Rio Grande LNG facility.
NextDecade said it is developing and beginning the permitting process for Trains 6 through 8.
The LNG terminal operator expects these trains to increase its total liquefaction capacity by approximately 18 mtpa once constructed and placed into operation.