NextDecade Finalizes, Executes EPC Contracts for Trains 4, 5 at Rio Grande LNG Facility

NextDecade and Bechtel Energy finalized two contracts, including a pricing refresh of NextDecade’s lump-sum, engineering, procurement, and construction (EPC) contract that includes the construction of Train 4 at the Rio Grande LNG facility and a lump-sum, EPC contract for the construction of Train 5. Both include related infrastructure.

• Rio Grande LNG Train 4 agreed to pay Bechtel approximately $4.77 billion for the work under the EPC contract for Train 4. NextDecade projects that owner’s costs, contingencies, financing fees, and interest during construction1 are approximately $1.8 - $2.0 billion for Train 4 and supporting infrastructure.
• Rio Grande LNG Train 5 agreed to pay Bechtel approximately $4.32 billion for the work under the EPC contract for Train 5. NextDecade projects that owner’s costs, contingencies, financing fees, and interest during construction1 are approximately $1.8-$2.0 billion for Train 5 and supporting infrastructure.

Updates on Trains 4 and 5

Commercialization of Train 4 is complete, and NextDecade started the financing process for Train 4 and related infrastructure. NextDecade aims for a positive Final Investment Decision (FID) on Train 4 before the end of the pricing validity period for the Train 4 EPC contract.

NextDecade announced a 20-year, 2.0 MTPA LNG sale and purchase agreement with JERA for offtake from Train 5 and is working on commercializing an additional 2.5 MTPA under long-term LNG agreements to support a positive FID on Train 5. The financing process has started for Train 5 and related infrastructure and is targeting FID before the end of the pricing validity period for the Train 5 EPC contract.

In April, TotalEnergies Gas & Power North America applied its LNG purchase option to Train 4 at NextDecade’s Rio Grande LNG Facility in Brownsville, TX. The companies signed a 20-year LNG sale and purchase agreement (SPA) in which TotalEnergies receives 1.5 MTPA of LNG at a price indexed to Henry Hub and on a free-on-board basis.

“TotalEnergies has been a key contributor to the success of Rio Grande LNG Phase 1, and we are pleased to be expanding our strategic partnership with TotalEnergies with the execution of this Train 4 SPA,” said Matt Schatzman, NextDecade’s Chairman and CEO. “This SPA completes the commercial support we need for Rio Grande LNG Train 4, and we are now focused on progressing Train 4 toward a positive final investment decision.”

Currently, NextDecade has sold 4.6 MTPA of LNG from Train 4, all of which are pending its positive final investment decision (FID). The positive FID, with this contract to TotalEnergies, is now possible due to adequate financing to build Train 4 and its connected infrastructure.