After confirming its expectation to achieve a positive FID on Rio Grande LNG Train 4 by September 15, 2025, NextDecade has sanctioned this addition to the U.S. project under development near Brownsville, closed financial transactions to fully fund it, and issued full notice to proceed to Bechtel Energy under the lump-sum, turnkey engineering, procurement, and construction (EPC) contract for Train 4 and related infrastructure.
Train 4, which has expected LNG production capacity of approximately 6 million tonnes per annum (mtpa), bringing the total expected LNG production capacity under construction at Rio Grande LNG to approximately 24 mtpa, is commercially supported by 4.6 mtpa of 20-year LNG sale and purchase agreements (SPAs) with ADNOC, TotalEnergies and Aramco.
The developer has closed on approximately $6.7 billion in committed financing to fully fund the expected costs for Train 4 and related infrastructure, including $3.85 billion term loan facility at Rio Grande LNG Train 4, $1.13 billion in equity commitments from NextDecade, and $1.70 billion in equity commitments from Global Infrastructure Partners, a part of BlackRock; GIC; Mubadala Investment Company; and TotalEnergies.
Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer, noted: “We are pleased to have TotalEnergies, our largest LNG customer and equity partner for Phase 1 of Rio Grande LNG, extend their commitment to our project through Train 4. LNG exported by TotalEnergies from our project will provide affordable, reliable, and secure energy to customers around the world.”
TotalEnergies currently holds a 16.7% interest in Phase 1 of Rio Grande LNG, which includes three liquefaction trains under construction in South Texas, and will offtake 5.4 mtpa. This phase is expected to start operations in 2027. However, the French energy giant also holds a 17.1% stake in NextDecade, Rio Grande LNG’s shareholder and operator, which continues to progress Train 5 at Rio Grande LNG toward an expected FID in the fourth quarter of 2025.
Schatzman added: “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.”