NextDecade eyes Rio Grande LNG expansion

NextDecade Corp. said it plans to significantly expand the liquefaction capacity of its Rio Grande LNG Facility.

The company is preparing to develop Trains 6, 7, and 8 at the site, further solidifying its position in the growing LNG market, said CEO Matt Schatzman.

“As we begin 2025, we are at an exciting time in NextDecade history,” he said. “Our team is working diligently to capitalize on our outsized growth opportunities while continuing to construct Trains 1 through 3 (Phase 1) at the Rio Grande LNG Facility safely, on schedule, and on budget.” He added that discussions for Trains 4 and 5 are also progressing, with the goal of securing final investment decisions (FIDs) for both trains soon.

The expansion to Trains 6, 7, and 8 is poised to increase the facility’s liquefaction capacity by an additional 18 million tonnes per annum (MTPA). Train 6, which will be developed within the existing levee at the site, is expected to have a capacity of 6 MTPA. The development of Trains 7 and 8, located outside the levee, will add a combined 12 MTPA of additional production capacity. NextDecade is currently in the process of preparing for the necessary permitting, with a pre-filing application for Train 6 expected to be submitted to the Federal Energy Regulatory Commission (FERC) in 2025, followed by a full application in 2026.

The expansion plan is a major step in NextDecade’s strategy to enhance its competitive edge in the global LNG market. As Schatzman said, “The development of these additional liquefaction trains is a key component of our strategy to meet the growing global demand for LNG and provide secure, low-cost energy solutions.”

Phase 1, which includes Trains 1 through 3, is already under construction. As of January 2025, the facility’s progress was on schedule, with construction activities focused on steel assembly, foundation work, and tank installations. Bechtel Energy Inc. is the contractor overseeing the EPC (engineering, procurement, and construction) work.

To support the ongoing construction and expansion, NextDecade secured a US$175 million senior secured loan in December 2024. The funds will help cover development costs for the new trains, including working capital and general corporate purposes. In addition, NextDecade has entered into various commercial agreements, including a LNG sales purchase agreement with ADNOC for Train 4 and a Heads of Agreement with Aramco for Train 4 as well.

In terms of financing, NextDecade intends to leverage both debt and equity for the construction of Trains 4 and beyond. With equity partners in the Rio Grande Phase 1 joint venture, the company expects to fund a significant portion of the equity commitments for the upcoming trains.

The development of Trains 6 through 8 marks a new phase in NextDecade’s long-term vision for the Rio Grande LNG Facility, positioning the company to meet both domestic and international LNG demand in a sustainable and economically viable manner.