NextDecade Approves Rio Grande LNG Train 5

NextDecade Corp on Thursday announced a final investment decision (FID) and financial close for the $6.7-billion fifth train of Rio Grande LNG in Brownsville, Texas, as well as a full notice to proceed to contractor Bechtel Energy Inc.

“Train 5 has expected LNG production capacity of approximately six million tonnes per annum (MTPA), bringing the total expected LNG production capacity under construction at Rio Grande LNG to approximately 30 MTPA”, the Houston, Texas-based developer said in a statement on its website.

Train 5 has 20-year purchase commitments totaling 4.5 MTPA from EQT Corp, ConocoPhillips and JERA Co Inc.

“The guaranteed substantial completion date for train 5, as well as the date of first commercial delivery under the train 5 LNG SPAs [sale and purchase agreements], is anticipated in the first half of 2031”, NextDecade said.

NextDecade has secured financing to cover the full expected cost of train 5 and supporting infrastructure. The commitments comprise a $3.59-billion term loan facility signed by Rio Grande LNG Train 5 LLC; $1.29 billion in equity commitments from NextDecade; $1.29 billion in equity commitments from Global Infrastructure Partners (GIP), GIC and Mubadala Investment Co; and a $500-million private notes placement by Rio Grande LNG Train 5 LLC.

“NextDecade 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 NextDecade common shares outstanding”, the statement said.

“The FinCo Loan is a $729-million delayed draw bank facility that bears interest at SOFR plus 350 basis points”, NextDecade said.

“The SuperFinCo Loan is a $600-million term loan, with net proceeds disbursed at financial close”, it added.

“NextDecade has an initial economic interest of 50 percent in train 5, which will increase to 70 percent after the financial investors [GIP, GIC and Mubadala] achieve certain returns on their investments in train 5”, NextDecade said.

The expected investment includes “EPC [engineering, procurement and construction] costs, owner’s costs, contingencies, financing fees and interest during construction, and other costs”, it said.

NextDecade made a FID on train 5 within a month of approving train 4, which has an expected capacity of about six MTPA.

Train 4 has 20-year orders totaling 4.6 MTPA from Abu Dhabi National Oil Co, Saudi Arabian Oil Co and TotalEnergies SE.

“The guaranteed substantial completion date for train 4, as well as the date of first commercial delivery under the train 4 LNG SPAs, is anticipated in the second half of 2030”, NextDecade said in a press release September 9 announcing the FID and a full notice to proceed to Bechtel.

NextDecade expects train 4 and its supporting infrastructure to also cost $6.7 billion. Rio Grande LNG Train 4 LLC entered a $3.85-billion term loan facility. NextDecade made $1.13 billion in equity commitments. GIP, GIC, Mubadala and TotalEnergies committed $1.7 billion as equity owners.

NextDecade initially owns 40 percent in train 4. The stake will increase to 60 percent after GIP, GIC and Mubadala achieve certain returns on their investments, according to NextDecade.

In total, Rio Grande LNG can export up to 1.32 trillion cubic feet a year of natural gas equivalent – 27 MTPA of LNG from trains 1-5 – to FTA and non-FTA countries until 2050. DOE granted authorization through orders first issued – later amended – August 2016 for the portion for countries with a free trade agreement (FTA) with the United States and February 2020 for the non-FTA portion.

Rio Grande LNG’s phase 1, which comprises the first three out of the five federally approved liquefaction trains, is under construction.

While Rio Grande LNG’s construction permit is being reviewed by the Federal Energy Regulatory Commission (FERC) in response to a second remand from the Court of Appeals for the District of Columbia Circuit, the court in March 2025 modified the August 2024 remand to allow activities to continue, according to FERC.

As part of the ongoing review, FERC said July 31, 2025, it had issued a final supplemental environmental impact statement (SEIS) for Rio Grande LNG and the associated pipeline project owned by Enbridge Inc.

In a statement about the new SEIS, NextDecade said August 1, “FERC anticipates issuing a final order on the remand by November 20, 2025”.

To contact the author, email jov.onsat@rigzone.com