NextDecade Corp on Thursday introduced a ultimate funding determination (FID) and monetary shut for the $6.7-billion fifth prepare of Rio Grande LNG in Brownsville, Texas, in addition to a full discover to proceed to contractor Bechtel Vitality Inc.
“Practice 5 has anticipated LNG manufacturing capability of roughly six million tonnes every year (MTPA), bringing the overall anticipated LNG manufacturing capability below building at Rio Grande LNG to roughly 30 MTPA”, the Houston, Texas-based developer stated in an announcement on its web site.
Practice 5 has 20-year buy commitments totaling 4.5 MTPA from EQT Corp, ConocoPhillips and JERA Co Inc.
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“The assured substantial completion date for prepare 5, in addition to the date of first industrial supply below the prepare 5 LNG SPAs [sale and purchase agreements], is anticipated within the first half of 2031”, NextDecade stated.
NextDecade has secured financing to cowl the complete anticipated value of prepare 5 and supporting infrastructure. The commitments comprise a $3.59-billion time period mortgage facility signed by Rio Grande LNG Practice 5 LLC; $1.29 billion in fairness commitments from NextDecade; $1.29 billion in fairness commitments from International Infrastructure Companions (GIP), GIC and Mubadala Funding Co; and a $500-million non-public notes placement by Rio Grande LNG Practice 5 LLC.
“NextDecade used $233 million of money readily available and entered into a complete of $1.33 billion in time period loans to finance its portion of prepare 5 fairness funding commitments with out a materials impression to NextDecade widespread shares excellent”, the assertion stated.
“The FinCo Mortgage is a $729-million delayed draw financial institution facility that bears curiosity at SOFR plus 350 foundation factors”, NextDecade stated.
“The SuperFinCo Mortgage is a $600-million time period mortgage, with internet proceeds disbursed at monetary shut”, it added.
“NextDecade has an preliminary financial curiosity of fifty % in prepare 5, which is able to enhance to 70 % after the monetary buyers [GIP, GIC and Mubadala] obtain sure returns on their investments in prepare 5”, NextDecade stated.
The anticipated funding consists of “EPC [engineering, procurement and construction] prices, proprietor’s prices, contingencies, financing charges and curiosity throughout building, and different prices”, it stated.
NextDecade made a FID on prepare 5 inside a month of approving prepare 4, which has an anticipated capability of about six MTPA.
Practice 4 has 20-year orders totaling 4.6 MTPA from Abu Dhabi Nationwide Oil Co, Saudi Arabian Oil Co and TotalEnergies SE.
“The assured substantial completion date for prepare 4, in addition to the date of first industrial supply below the prepare 4 LNG SPAs, is anticipated within the second half of 2030”, NextDecade stated in a press launch September 9 saying the FID and a full discover to proceed to Bechtel.
NextDecade expects prepare 4 and its supporting infrastructure to additionally value $6.7 billion. Rio Grande LNG Practice 4 LLC entered a $3.85-billion time period mortgage facility. NextDecade made $1.13 billion in fairness commitments. GIP, GIC, Mubadala and TotalEnergies dedicated $1.7 billion as fairness house owners.
NextDecade initially owns 40 % in prepare 4. The stake will enhance to 60 % after GIP, GIC and Mubadala obtain sure returns on their investments, in accordance with NextDecade.
In complete, Rio Grande LNG can export as much as 1.32 trillion cubic toes a 12 months of pure fuel equal – 27 MTPA of LNG from trains 1-5 – to FTA and non-FTA international locations till 2050. DOE granted authorization by orders first issued – later amended – August 2016 for the portion for international locations with a free commerce settlement (FTA) with america and February 2020 for the non-FTA portion.
Rio Grande LNG’s part 1, which includes the primary three out of the 5 federally authorized liquefaction trains, is below building.
Whereas Rio Grande LNG’s building allow is being reviewed by the Federal Vitality Regulatory Fee (FERC) in response to a second remand from the Courtroom of Appeals for the District of Columbia Circuit, the courtroom in March 2025 modified the August 2024 remand to permit actions to proceed, in accordance with FERC.
As a part of the continuing evaluate, FERC stated July 31, 2025, it had issued a ultimate supplemental environmental impression assertion (SEIS) for Rio Grande LNG and the related pipeline challenge owned by Enbridge Inc.
In an announcement concerning the new SEIS, NextDecade stated August 1, “FERC anticipates issuing a ultimate order on the remand by November 20, 2025”.
To contact the creator, electronic mail jov.onsat@rigzone.com
