NextDecade Sets September Timeline for Final Investment Decision on Rio Grande LNG Train 5

NextDecade plans to make a final investment decision on its Rio Grande LNG Train 5 in September. The company, which operates the Rio Grande liquefied natural gas export facility in Texas, has yet to announce a timeline for a decision on the fifth train.

NextDecade Corporation (NextDecade or the Company) (NASDAQ: NEXT) has announced that it plans to make a final investment decision (FID) on its Rio Grande LNG Train 5 in September 2025. This decision follows significant progress made in the commercialization and financing of the fifth train. The company's CEO, Matt Schatzman, highlighted the company's ongoing efforts to safely construct Phase 1 of the Rio Grande LNG facility and develop expansion capacity [1].

In May 2025, NextDecade signed a 20-year LNG sale and purchase agreement (SPA) with JERA, a 2 million tonnes per annum (MTPA) contract for Train 5. This agreement underscores the strong demand for LNG from the Rio Grande LNG facility [1]. The company is also progressing the financing process for Train 5, with the goal of achieving a positive FID in mid-September 2025, subject to obtaining appropriate commercial support and financing [1].

NextDecade has made significant strides in its construction progress. As of June 2025, the overall project completion percentage for Trains 1 and 2 and the common facilities at the Rio Grande LNG facility was 48.3%, and for Train 3, it was 22.7% [1]. The company is also finalizing the pricing refresh of its lump-sum, turnkey engineering, procurement, and construction (EPC) contract with Bechtel for Train 5 and related infrastructure [1].

The Rio Grande LNG facility, located on the north shore of the Brownsville Ship Channel in south Texas, is expected to export up to 27 MTPA of LNG. Phase 1 at the facility includes three liquefaction trains, two LNG storage tanks, and associated site infrastructure [1]. The company holds equity interests in the Phase 1 joint venture, entitling it to up to 20.8% of the distributions of available cash during operations [1].

NextDecade's progress towards the FID for Train 5 is part of its broader strategy to expand the Rio Grande LNG facility's capacity and meet growing demand for LNG. The company's ability to secure long-term commercial agreements and secure financing will be critical in achieving this goal.

References:
[1] https://www.morningstar.com/news/business-wire/20250801901442/nextdecade-provides-second-quarter-2025-business-update