NextDecade Submits Positive FID, Financial Close on Rio Grande LNG’s Train 5

NextDecade Corp. made a positive final investment decision (FID) on Train 5 at Rio Grande LNG and issued Bechtel Energy full notice to proceed on the Train 5 project. The company also closed financial transactions to completely fund Train 5 and associated infrastructure. Bechtel will proceed under NextDecade’s lump-sum, turnkey engineering, procurement, and construction contract.

“Today, we are excited to announce that we have made a positive FID on Train 5, marking the second FID for NextDecade in just over a month,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “This achievement is the result of effort by our team and our partners, and I would like to thank the entire NextDecade team, our equity partners, our Train 5 LNG customers, Bechtel, our financing partners, and our local stakeholders for helping bring Train 5 FID to fruition.”

Rio Grande LNG’s Train 5 has an expected LNG production capacity of approximately 6 MTPA, raising the total under-construction production capacity to about 30 MTPA. Train 5 is commercially supported by 4.5 MTPA of 20-year LNG sale and purchase agreements (SPAs) with JERA, EQT Corp., and ConocoPhillips. Its guaranteed substantial completion date and first commercial delivery are scheduled for early 2031.

Rio Grande LNG storage tanks | Image Credit: NextDecade

The total project costs for Train 5 and related infrastructure are expected to be approximately $6.7 billion, including EPC costs, owner’s costs, contingencies, financing fees, and interest during construction. Currently, NextDecade retains a 50% initial economic interest in Train 5, which will increase to 70% once financial investors obtain returns on their investments.

ConocoPhillips LNG Offtake

In late August 2025, ConocoPhillips and Sempra Infrastructure signed a 20-year SPA for 4 MTPA of LNG from the Port Arthur LNG Phase 2 (PALP 2) development project in Jefferson County, TX. The PALP 2 development project will feature two liquefaction trains that produce approximately 13 MTPA of LNG. This phase increases the Port Arthur LNG facility’s total liquefaction capacity to about 26 MTPA. Future phases are in the early development stage.

Sempra Infrastructure also selected Bechtel to execute the engineering, procurement, and construction for the Port Arthur LNG Phase 2 facility. Despite progress and heavy market interest, the project is subject to numerous risks/uncertainties, such as completing the required commercial agreements, securing necessary permits, obtaining financing, reaching a FID, etc. The company targets a Phase 2 FID in 2025.

Previously, Sempra Infrastructure and ConocoPhillips started their cooperation on the Port Arthur LNG Phase 1 project, in which ConocoPhillips holds a 30% equity stake and obtained 5 MTPA in offtake capacity for 20 years. Phase 1 is presently under construction, featuring two LNG storage tanks and two liquefaction trains, expected to enter commercial operations in 2027 and 2028, respectively.

JERA’s CCUS

In June 2025, JERA Co. and Kawasaki Heavy Industries (KHI) signed a memorandum of understanding (MoU) for a joint study focused on creating a carbon capture, utilization, and storage (CCUS) value chain at the Yokosuka Thermal Power Station in Kurihama, Yokosuka City, Kanagawa Prefecture.

Under the MoU, the two companies plan to conduct demonstration testing using KHI’s advanced carbon capture equipment at the Yokosuka Thermal Power Station, which is operated by JERA's subsidiary, JERA Power Yokosuka G.K., before 2030. This will mark the first time CO₂ capture facilities will be installed at a coal-fired thermal power plant on Tokyo Bay.