NextDecade has secured up to $1.8bn investment commitments from TotalEnergies and Global Infrastructure Partners (GIP) to fund a fourth liquefaction plant at its Rio Grande LNG export project in Texas.
This development moves the US liquefied natural gas (LNG) company closer to a financial decision on the project’s Train 4, which will have a capacity of 5.4 million metric tons per annum (mtpa).
TotalEnergies is set to invest approximately $300m for a 10% interest in the Train 4 joint venture. Meanwhile, an affiliate of Singapore-based GIP will contribute up to $1.5bn for a 50% stake, which could decrease to 30% contingent on meeting certain return thresholds.
Through its subsidiaries, NextDecade plans to offer up to $1.2bn for a 40% interest, potentially increasing to 60% after GIP achieves agreed returns.
TotalEnergies maintains a long-term contract with NextDecade to purchase 1.5 million metric tons of LNG from Train 4. However, the French oil and gas major has opted not to invest in or purchase from the proposed Train 5 facility of the Rio Grande LNG project.
NextDecade has contracted Bechtel for constructing Train 4 at $4.77bn under a fixed-price agreement valid until mid-September. The Rio Grande LNG facility is being developed on a site in Brownsville with an initial phase one capacity planned at 17.6mtpa.
According to NextDecade, the US Federal Energy Regulatory Commission (FERC) has completed its final environmental impact statement for the for the first five liquefaction trains of the project. The FERC is anticipated to issue a final order in this regard by 20 November 2025.
Earlier this month, NextDecade chairman and CEO Matt Schatzman said that the company is continuing work on Phase 1 of the Rio Grande LNG project and advancing Trains 4 and 5 towards final investment decisions (FIDs).
The project’s completion percentage for Trains 1 and 2 stands at nearly half, with engineering and procurement substantially further along.
Earlier this year, NextDecade finalised a commercial agreement for Train 4 with Aramco as another long-term customer. Additionally, it announced an agreement with JERA for Train 5.
