NextDecade Corp. said Wednesday it is on track to reach a FID (final investment decision) this year for Train V of the under-construction Rio Grande LNG after roping in a new liquefied natural gas (LNG) buyer in EQT Corp.
The Pittsburgh, Pennsylvania-based vertically integrated gas company signed an agreement to buy 1.5 million metric tons per annum (MMtpa) over 20 years from Train V.
“The agreement will be on a free-on-board basis at a price indexed to Henry Hub, subject to NextDecade making a positive FID on Train V”, EQT said in a statement on its website.
EQT president and chief executive Toby Z. Rice said, “The execution of this agreement represents continued momentum of EQT’s LNG strategy, which is focused on further diversifying the company’s end-market exposure into the rapidly growing global gas markets and accelerating long-term earnings growth”.
“Consistent with our existing LNG deals, EQT will market and optimize its own cargos, providing structuring flexibility and downside protection”, Rice added.
NextDecade chair and chief executive Matt Schatzman said, “The LNG we are selling from our project to EQT will play a critical role in enhancing the energy security of our allies around the world”.
The Houston, Texas-based LNG developer said in a separate statement it has now secured buyers for 3.5 MMtpa from Train V. Earlier this year Japan’s JERA Co. Inc. signed up for two MMtpa over 20 years.
NextDecade said it is looking to secure commitment for an additional one MMtpa “under a long-term sale and purchase agreement to support a positive FID on Train V”.
“The company expects to complete commercialization of Train V in the third quarter of 2025, and subject to obtaining adequate financing, NextDecade expects to achieve a positive FID on Train V in the fourth quarter of 2025”, it said.
NextDecade expects to make a FID before the expiry of a newly revised price validity period for the engineering, procurement and construction contract it had awarded to Bechtel Energy Inc. “NextDecade has also extended the price validity period under its lump-sum turnkey EPC contract with Bechtel Energy Inc for Train V until November 15, 2025”, NextDecade said.
“The total costs for Rio Grande LNG Train 5 and related infrastructure are expected to be approximately $6.7 billion”.
It added, “NextDecade also continues to expect to achieve a positive FID on Rio Grande LNG Train IV by September 15, 2025, subject to obtaining adequate financing”. Train IV has already been fully subscribed according to the company.
Rio Grande LNG’s Phase I, which consists of Trains I to III, is under construction. NextDecade announced a FID on the first phase in July 2023, earmarking $18.4 billion then. The project had been planned to have a carbon capture component. However, NextDecade said August 2024 it had withdrawn its permit application to build the emissions mitigation component.
Trains I to V each have a planned capacity of 5.4 MMtpa. Rio Grande LNG holds a Department of Energy (DOE) permit to export 1.32 trillion cubic feet a year of natural gas equivalent, or 27 MMtpa of LNG according to NextDecade, 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 U.S. and February 2020 for the non-FTA portion.
Last July the Federal Energy Regulatory Commission (FERC) said it had issued a final supplemental environmental impact statement (SEIS) for Rio Grande LNG and the associated pipeline project owned by Enbridge Inc.
FERC’s ongoing review includes the first five of eight liquefaction trains planned for Rio Grande LNG.
Meanwhile the Rio Bravo Pipeline is designed to carry up to 4.5 billion cubic feet a day of gas from the Agua Dulce supply area to the liquefaction facility.
The new SEIS is in response to a remand by the Court of Appeals for the District of Columbia Circuit, issued August 2024, of FERC’s reauthorization of the projects. In the August 2024 order the court vacated FERC’s authorization issued April 2023 because the commission had not issued a supplemental EIS. The August 2024 ruling was the court’s second remand for the project.
In March 2025 the court revised its August 2024 ruling and issued a remand without vacatur.
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
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