NextDecade has reached final investment decision (FID) on Rio Grande LNG Train 4, and TotalEnergies has taken a 10% stake in the venture developing that train.
NextDecade announced on 9 September it had decided to move forward with the project and issued a full notice to proceed to Bechtel Energy, which had received a $4.3 billion a lump sum turnkey engineering, procurement, and construction (EPC) contract in August 2024. NextDecade also announced it had closed financial transactions to fully fund Train 4 and related infrastructure and continues to progress Train 5 toward an expected FID in the fourth quarter of 2025.
Train 4 has expected liquefied natural gas (LNG) production capacity of approximately 6 million tonnes per year (Mtpa), which brings the total expected LNG production capacity under construction at Rio Grande LNG in Brownsville, Texas, to approximately 24 Mtpa.
Train 4 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 under the Train 4 LNG SPAs, is anticipated in the second half of 2030. Train 4 and related infrastructure are expected to cost about $6.7 billion, which is the amount of committed financing NextDecade closed on. That financing includes a $3.85 billion term loan facility at Rio Grande LNG Train 4, $1.13 billion in equity commitments from NextDecade, and $1.7 billion in equity commitments from BlackRock’s Global Infrastructure Partners, GIC, Mubadala Investment Company, and TotalEnergies.
TotalEnergies Buys Train 4 Stake
TotalEnergies announced 10 September it had agreed to take a 10% stake in the joint venture developing Train 4 of Rio Grande LNG. TotalEnergies also holds 16.7% interest in the $18.4-billion Phase 1 of Rio Grande LNG, which includes Trains 1 through 3 and is expected to go online in 2027. TotalEnergies will offtake 5.4 Mtpa from Phase 1 and 1.5 Mtpa from Train 4.
Stéphane Michel, president of gas, renewables, and power at TotalEnergies, said in a news release the LNG from the fourth train “will increase TotalEnergies’ US LNG export capacity to over 16 Mtpa by 2030.”
Train 5 Nears FID
NextDecade said Train 5 is commercially supported by 4.5 Mtpa of 20-year LNG SPAs with JERA, EQT, and ConocoPhillips. Total project costs for Train 5 and related infrastructure are expected to total approximately $6.7 billion. NextDecade said it expects to finance construction of Train 5 using approximately 60% debt and 40% equity funding at the project level.
NextDecade in June awarded Bechtel a lump-sum, turnkey EPC contract for Train 5 and related infrastructure.
FID on Train 5 is anticipated in the last quarter of 2025, which would translate to a guaranteed substantial completion date in the first half of 2031.
Trains 6 through 8 are in development and beginning the permitting process.
