The company also anticipates a final investment decision on Train 5 in the fourth quarter of 2025.
In a major step forward for its Rio Grande LNG project, NextDecade Corporation has officially made a positive final investment decision (FID) on Train 4, a move that secures the project's funding and greenlights its construction. This decision, announced on September 9, 2025, solidifies the company's commitment to expanding its natural gas infrastructure to meet growing global demand for cleaner energy. With the FID, NextDecade has also issued a full notice to proceed to Bechtel Energy Inc., its engineering, procurement, and construction (EPC) partner.
The Train 4 project is projected to have an LNG production capacity of approximately 6 million tonnes per annum (MTPA), which will bring the total capacity under construction at Rio Grande LNG to a substantial 24 MTPA. This phase of the project is commercially backed by a series of 20-year LNG Sale and Purchase Agreements (SPAs) with major international energy companies, including ADNOC, TotalEnergies, and Aramco. The guaranteed substantial completion and first commercial delivery from Train 4 are anticipated in the second half of 2030.
The total cost for the Train 4 project and its related infrastructure is estimated at around $6.7 billion. To cover this significant investment, NextDecade has successfully closed on an equal amount of committed financing. This funding package includes a $3.85 billion term loan facility at the project level, along with equity commitments of $1.13 billion from NextDecade itself and an additional $1.70 billion from a consortium of partners, including Global Infrastructure Partners (a part of BlackRock), GIC, Mubadala Investment Company, and TotalEnergies.
Crucially, NextDecade’s $1.13 billion equity commitment is being financed through a combination of a $734 million delayed-draw bank facility and a $600 million term loan, with no impact on the company's common shares outstanding. This approach underscores a strategic effort to fund the expansion without diluting existing shareholder value.
Looking ahead, NextDecade is already focused on the next phase of its expansion, with a positive FID on Train 5 expected in the fourth quarter of 2025. The company has finalized the commercial aspects of Train 5, which is supported by 20-year LNG SPAs with JERA, EQT Corporation, and ConocoPhillips. The expected project costs for Train 5 are also estimated to be approximately $6.7 billion. NextDecade anticipates financing Train 5 with a similar mix of debt and equity funding, with a guaranteed substantial completion date and first commercial delivery expected in the first half of 2031.
