BATON ROUGE, LOUISIANA (Steve Stewart, Energy Analytics Institute, 28.Feb.2025) — NextDecade Corporation, which is developing and constructing the Rio Grande liquefaction and export facility near Brownsville, Texas with 48 million tonnes per annum (MTPA) of potential capacity, announced development plans for Trains 6-8.
Trains 6-8 are wholly owned by NextDecade and are cumulatively expected to increase the company’s total liquefaction capacity by 18 MTPA once constructed and placed into operation, the company announced 28 Feb. 2025 in its year-end 2024 financial press release.
The Rio Grande liquefied natural gas (LNG) facility site, also known as RGLNG, has sufficient space to develop up to 10 liquefaction trains.
— Trains 1-3 (18 MTPA) are under construction;
— Trains 4-5 (12 MTPA) are in commercialization process and progressing toward a final investment decision (FID); and
— NextDecade is developing and initiating the permitting process for Trains 6-8 (18 MTPA).
“Our team is working diligently to capitalize on our outsized growth opportunities while continuing to construct Trains 1 through 3 (Phase 1) at the Rio Grande LNG Facility safely, on schedule, and on budget,” NextDecade chairman and CEO Matt Schatzman said in the statement. “We are working with multiple potential commercial counterparties to progress Trains 4 and 5 toward positive final investment decisions (FIDs), and we believe we are well positioned to secure commercial support for both trains.”
Schatzman said the company was pleased to announce development plans for expansion capacity at the RGLNG facility beyond Trains 1-5.
“We are currently developing and preparing to start the permitting process for Train 6 and starting the development of Trains 7 and 8. Train 6 is being developed inside the existing levee at the site, which is expected to provide advantages in site preparation and expected economics. We plan to pre-file an application with the Federal Regulatory Energy Commission (FERC) for Train 6 this year. Trains 7 and 8 are being developed on the site outside of the existing levee. Additionally, we expect to explore options for the development of up to two additional trains at our site beyond Train 8,” Schatzman said.
RGLNG facility
RGLNG is on the north shore of the Brownsville Ship Channel in south Texas. The site is located on 984 acres of land which has been leased long-term and includes 15,000ft of frontage on the Brownsville Ship Channel.
NextDecade believes the site is advantaged due to its proximity to abundant natural gas resources in the Permian Basin and Eagle Ford Shale, access to an uncongested waterway for vessel loading, and location in a region that has historically been subject to fewer and less severe weather events relative to other locations along the US Gulf Coast.
RGLNG has received necessary approvals and authorizations required for the construction of up to 5 liquefaction trains and export of up to 27 MTPA of LNG, including approval from FERC and free trade agreement (FTA) and non-FTA authorizations from the Department of Energy.
First LNG is expected in 2027.
Trains 1-3: Phase 1
RGLNG Phase 1 is under construction and includes 3 liquefaction trains with a total nameplate capacity of 18 MTPA of LNG production, 2 180,000 cubic meter full containment LNG storage tanks, and 2 jetty berthing structures designed to load LNG carriers up to 216,000 cubic meters in capacity.
Phase 1 also includes associated site infrastructure and common facilities including feed gas pretreatment facilities, electric and water utilities, 2 totally enclosed ground flares for the LNG tanks and marine facilities, 2 ground flares for the liquefaction trains, roads, levees surrounding the development area, and warehouses, administrative, operations control room, and maintenance buildings.
As of Jan. 2025, progress on Trains 1-3 is in line with the schedule under the EPC contracts.
During the fourth-quarter 2024 and early 2025, the construction team continued steel assembly in the Train 1 area and adjacent pipe racks.
Within Train 2, foundations were progressed and steel assembly began. Tank 1 roof panels were set in place, and the first wall concrete pour for Tank 2 was completed. Across the site, Bechtel‘s work also continues on installing underground structures, loading berths, piling, concrete foundations, and other siteworks. Bechtel has materially completed purchase orders for critical and high-value items for Phase 1.
NextDecade holds equity interests in the Phase 1 joint venture that entitle it to receive up to 20.8% of the distributions of available cash during operations.
Trains 4-5: FID
NextDecade expects to make a positive FID and commence construction on Trains 4 and 5 and related infrastructure at the RGLNG facility, subject to, among other things, maintaining requisite governmental approvals, finalizing and entering into engineering, procurement and construction (EPC) contracts, entering into appropriate commercial arrangements, and obtaining adequate financing to construct each train and related infrastructure.
NextDecade has finalized an EPC contract with Bechtel for Train 4 and related infrastructure. Pricing under the EPC Contract for Train 4 was valid through 31 Dec. 2024, and a pricing refresh is in process and is expected to be completed in 2025.
The company continues to advance commercial discussions with multiple potential counterparties and expects to finalize commercial arrangements for Train 4 in the coming months to support a positive FID.
The company entered into an LNG sale and purchase agreement (SPA) with ADNOC for the sale of 1.9 MTPA of LNG from Train 4, as well as a non-binding Heads of Agreement (HOA) with Aramco for a 20-year SPA for the sale of 1.2 MTPA of LNG from Train 4. The NextDecade is working with Aramco to finalize a binding SPA. Additionally, an affiliate of TotalEnergies SE has an LNG purchase option of 1.5 MTPA for Train 4, and the company expects TotalEnergies to exercise the option.
With regards to the Train 4, NextDecade expects to finance construction of the train and associated infrastructure utilizing a combination of debt and equity funding. The company expects to enter into bank facilities for the debt portion of the funding. In connection with consummating the Rio Grande Phase 1 equity joint venture, the company’s equity partners each have options to invest in Train 4 equity, which, if exercised, would provide 60% of the equity funding required for Train 4. Inclusive of these options, NextDecade currently expects to fund 40% of the equity commitments for Train 4, and to have an initial economic interest of 40% in Train 4, increasing to 60% after its equity partners achieve certain returns on their investments in Train 4.
NextDecade expects to make a positive FID on Train 4 after commercial and financing arrangements are finalized.
With regards to Train 5, the company is also progressing the development and commercialization. TotalEnergies holds an LNG purchase option for 1.5 MTPA for Train 5, and the Rio Grande Phase 1 equity partners have options to invest in Train 5 equity which are identical to their options to participate in Train 4 equity.
Additional liquefaction capacity
As discussed, NextDecade is developing and beginning the permitting process for additional liquefaction capacity at the RGLNG site beyond Trains 1-5. Trains 6 through 8 are wholly owned by NextDecade and are cumulatively expected to increase the company’s total liquefaction capacity by 18 MTPA once constructed and placed into operation.
Train 6 is being developed inside the existing levee at the RGLNG site and adjacent to Trains 1-5. The company expects to pre-file an application with FERC for Train 6 in 2025 and a full application with FERC in early 2026.
Trains 7-8, with a total expected LNG production capacity of 12 MTPA, are being developed on the site outside of the existing levee.
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By Steve Stewart reporting from Baton Rouge. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
