NextDecade Reaches FID, Closes $6.7 Billion Financing for Rio Grande LNG Train 5

NextDecade has made a final investment decision and closed $6.7 billion in financing for Train 5 at its Rio Grande LNG facility in Texas, advancing the company’s expansion to 30 MTPA of LNG capacity.

(P&GJ) — NextDecade Corporation has reached a positive final investment decision (FID) and completed $6.7 billion in financing for Train 5 at its Rio Grande LNG export facility in Brownsville, Texas.

The decision marks the company’s second FID in just over a month and brings total LNG capacity under construction at Rio Grande to about 30 million tonnes per annum (MTPA).

“Today, we are excited to announce that we have made a positive FID on Train 5, marking the second FID for NextDecade in just over a month,” said Matt Schatzman, Chairman and CEO of NextDecade. “This achievement is the result of tireless effort by our team and our partners.”

Train 5, with an expected production capacity of 6 MTPA, is supported by long-term LNG sale and purchase agreements totaling 4.5 MTPA with JERA, EQT Corporation, and ConocoPhillips. The guaranteed substantial completion and first commercial delivery are anticipated in the first half of 2031, with Bechtel Energy Inc. serving as the EPC contractor.

The project’s financing package includes a $3.59 billion term loan, $500 million in private placement notes, and $2.6 billion in combined equity commitments from NextDecade and partners Global Infrastructure Partners (BlackRock), GIC, and Mubadala Investment Company.

NextDecade will initially hold a 50% stake in Train 5, increasing to 70% after certain return thresholds are met by its financial investors.