NextDecade Reaches FID for Train 4 at Rio Grande LNG Export Project in Texas

(Credit: NextDecade)

NextDecade and its partners have reached a final investment decision (FID) on the fourth liquefaction plant, the Train 4, at Rio Grande liquefied natural gas (LNG) export project in Texas, closing financial transactions to fully fund the development and related infrastructure.

The FID was reached on September 9, accompanied by the issuance of full notice to proceed to Bechtel under the NextDecade’s lump-sum, turnkey engineering, procurement, and construction (EPC) contract for Train 4 and related infrastructure.

Train 4 has expected LNG production capacity of approximately 6 MTPA, bringing the total expected LNG production capacity under construction at Rio Grande LNG 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 (DFCD) under the Train 4 LNG SPAs, is anticipated in the second half of 2030.

Also, TotalEnergies signed agreements with NextDecade to take a 10% stake in the joint venture developing Train 4 of Rio Grande LNG (RGLNG), a liquefied natural gas (LNG) plant project located in South Texas. In addition to the 10% held directly, TotalEnergies will hold indirectly next to 7% in this Train 4 as a 17.1% shareholder of NextDecade.

The project’s overall cost, amounting to around $6.7 billion, will be financed with approximately 40% equity and 60% debt.

“The global call for additional natural gas infrastructure continues to be strong, and we are well positioned to meet this growing demand for cleaner energy, with approximately 24 million tonnes per annum (MTPA) of expected LNG production capacity currently under construction, Train 5 nearing a positive FID, and significant additional expansion capacity under development at the Rio Grande LNG site,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer.

The ownership structure for the Train 4 entails NextDecade (40%), and its partners Global Infrastructure Partners (GIP, 36.9%), GIC (7.9%), Mubadala (5.2%) and TotalEnergies (10%.) 

Positive FID on Train 5 in Late 2025

Train 5 commercialization is complete, and Train 5 is commercially supported by a total of 4.5 MTPA of 20-year LNG SPAs with JERA, EQT Corporation, and ConocoPhillips, according to NextDecade.

In June 2025, the company entered into a lump-sum, turnkey EPC contract with Bechtel for Train 5 and related infrastructure. In September 2025, it extended the pricing validity period under the Train 5 EPC contract through November 15, 2025, to accommodate the Company’s current expected timeline for achieving a positive FID on Train 5.

Project costs for Train 5 and related infrastructure are expected to total approximately $6.7 billion, including EPC costs, owner’s costs, contingencies, financing fees and interest during construction, and other costs, based on current estimates and expected interest rates1.

According to NextDecade, it expects to achieve a positive FID on Train 5 and related infrastructure, subject to obtaining adequate financing, in the fourth quarter of 2025.

Based on this timing, the guaranteed substantial completion date for Train 5, as well as DFCD under the Train 5 SPAs, is anticipated in the first half of 2031.