HOUSTON, TEXAS (By Ofelia Paredes, Energy Analytics Institute, 16.Oct.2025, Words: 453) — NextDecade Corporation made a positive final investment decision (FID) at Rio Grande LNG (RGLNG) Train 5. The company also closed financial transactions to fully fund the train and related infrastructure, and issued full notice to proceed to Bechtel Energy Inc. for the train.
Positive FID achieved on Train 5
The issue to Bechtel is under NextDecade’s lump-sum, turnkey engineering, procurement, and construction (EPC) contract for Train 5 and related infrastructure, NextDecade announced on 16 Oct. 2025 in an official statement.
Train 5 has an expected LNG production capacity of 6 million tonnes per annum (MTPA), bringing the total expected LNG production capacity under construction at RGLNG to 30 MTPA.
Train 5 is commercially supported by 4.5 MTPA of 20-year LNG sale and purchase agreements (SPAs) with JERA, EQT Corporation, and ConocoPhillips. The guaranteed substantial completion date for Train 5, as well as the date of first commercial delivery (DFCD) under the Train 5 LNG SPAs, is anticipated in the first-half 2031.
Project costs for Train 5 and related infrastructure are expected to total $6.7bn, including EPC costs, owner’s costs, contingencies, financing fees and interest during construction, and other costs1.
To fully fund the expected costs for Train 5 and related infrastructure, NextDecade successfully closed on $6.7bn in committed financing, including:
— $3.59bn term loan facility at RGLNG Train 5, LLC;
— $0.50bn private placement notes at RGLNG Train 5, LLC;
— $1.29bn in equity commitments from NextDecade; and
— $1.29bn in equity commitments from partners Global Infrastructure Partners, a part of BlackRock (GIP), GIC, Mubadala Investment Company (together, the financial investors).
NextDecade received $117mn at financial close from Rio Grande LNG Train 5, LLC for development costs and management services.
NextDecade has an initial economic interest of 50% in Train 5, which will increase to 70% after financial investors achieve certain returns on their investments in Train 5.
No impact on outstanding common shares
NextDecade used $233mn of cash on hand and entered into a total of $1.33bn in term loans to finance its portion of Train 5 equity funding commitments without a material impact to NextDecade common shares outstanding, the company said in the statement.
The FinCo loan is a $729mn delayed draw bank facility that bears interest at SOFR plus 350 basis points. Commitments under the FinCo loan are cancellable and can be prepaid without penalty.
The SuperFinCo loan is a $600mn term loan, with net proceeds disbursed at financial close. The SuperFinCo loan bears interest at 13%, with interest payable in kind until one year after Train 5 completion, and is callable at par beginning in Sep. 2030, according to NextDecade.
____________________
By Ofelia Paredes reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
