In an update of developments, US LNG plant developer, NextDecade Corp’s CEO, Matt Schatzman gave an update on developments in the first quarter and early second quarter of this year.
“NextDecade has had an incredibly strong start to 2025, as we announced expansion plans at the Rio Grande LNG facility, including Trains 6 through 8, received a positive outcome in the DC Circuit Court case, completed the commercialisation of Train 4, and continued to progress the construction of Phase 1 safely, on schedule, and on budget
“We continue to see excellent demand for US LNG, which will help us commercialise Train 5 and advance both Trains 4 and 5 toward positive final investment decisions (FIDs).
“In February, we announced expansion capacity at the Rio Grande LNG facility beyond Trains 1 through 5, including Trains 6 through 8, bringing our total expected LNG production capacity under construction or in development to 48 mill tonnes per annum.
“We expect to pre-file with the (US) Federal Energy Regulatory Commission (FERC) for Train 6 this year and will provide a permitting timeline for Trains 7 and 8 later this year.
“In March, we received a positive outcome in the DC Circuit Court case impacting our FERC order when the Court issued a revision to its August, 2024 judgment, resulting in a remand without vacatur of the FERC order and therefore ensuring that construction on Phase 1 can continue uninterrupted, while FERC completes a supplemental environmental impact statement (SEIS).
“FERC issued a draft SEIS in March and its analysis was consistent with our expectations and previous analysis of our project. We will continue to work with FERC as it completes the SEIS and re-authorisation process this year.
“In April, we announced 20-year LNG sale and purchase agreements (SPAs) with Aramco and Total, which join ADNOC as the long-term customers supporting Train 4, resulting in sufficient commercial commitments to underpin a positive FID.
“We are working with Bechtel on a refresh of our Train 4 EPC contract and we expect to launch the financing process for Train 4 imminently. Train 5 commercialisation is progressing and we are working with Bechtel on a Train 5 EPC contract, with a plan to launch the financing process for Train 5 once those are completed,” he said.
Under the EPC contracts with Bechtel, Phase 1 progress is tracked for Train 1, Train 2, and the common facilities on a combined basis and Train 3 on a separate basis.
As of March 2025: -
*The overall project completion percentage for Trains 1 and 2 and the common facilities of the Rio Grande LNG facility was 42.8%, which is in line with the schedule under the EPC contract. Within this project completion percentage, engineering was 87.9% complete, procurement was 76.3% complete, and construction was 14.1% complete.
*The overall project completion percentage for Train 3 of the Rio Grande LNG Facility was 17.8%, which is also in line with the schedule under the EPC contract. Within this project completion percentage, engineering was 41.9% complete, procurement was 37.2% complete, and construction was 0.8% complete.
In February, 2025, the company provided additional information regarding its development of more liquefaction capacity at Rio Grande LNG beyond Trains 1 through 5.
Trains 6 through 8 are wholly owned by NextDecade and are cumulatively expected to increase the company's total liquefaction capacity by around 18 mill tonnes per annum once constructed and placed into operation.
A pre-filing application with FERC for Train 6, with an expected LNG production capacity of about 6 mill tonnes per annum, is expected this year, and a full FERC application is expected in early 2026.
Trains 7 and 8, with a total expected LNG production capacity of around 12 mill tonnes per year, are being developed on the site outside of the existing levee.
In April 2025, the company announced a 20-year LNG SPA with a subsidiary of Aramco, by which thsubsidiary will purchase 1.2 mill tonnes per annum of LNG From Train 4 at the Rio Grande LNG facility for 20 years, on a free on board (FOB) basis at a price indexed to Henry Hub, subject to a positive FID on the train.
In the same month, TotalEnergies exercised its LNG purchase option with respect to Train 4 and the entered into a 20-year LNG SPA to purchase 1.5 mill tonnes per annum of LNG from Train 4, on an FOB basis at a price indexed to Henry Hub, subject to a positive FID.
NextDecade said that it now believed that sufficient long-term commercial agreements are now in place to support a positive FID on Train 4.
