NextDecade take FID on Train 5 at Rio Grande plant

US LNG producer NextDecade has taken a positive final investment decision (FID) on Train 5 at its Rio Grande LNG export terminal in Brownsville, Texas, the company announced on October 16.

With the decision, NextDecade also granted full notice to proceed to the construction contractor Bechtel for Train 5.

In June, NextDecade signed a contract with Bechtel that will see it pay the construction firm $4.77bn to build Train 4 and $4.32bn to construct Train 5 and supporting infrastructure.

“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,” NextDecade’s Chairman and Chief Executive Officer Matt Schatzman said in a statement.

Train 5 will boast a production capacity of 6mn tonnes per year (tpy) of LNG and raise the Texas facility’s nameplate production capacity to 30mn tpy.

NextDecade has already secured offtake agreements for 4.5mn tpy with 20-year sales and purchase agreements (SPAs) inked with EQT Corporation, JERA, and ConocoPhillips.

Train 5 and its associated infrastructure is expected to come at a price tag of $6.7bn. NextDecade is targeting first commercial delivery from the liquefaction unit in the first half of 2031.

The decision comes despite French supermajor TotalEnergies deciding not to participate in financing the project or purchase any supply from Train 5.

The decision came as a surprise and unexpected speed bump for the project, with TotalEnergies’ CEO Patrick Pouyanne previously saying that the French firm was considering investing in Train 5.

And in April, TotalEnergies enacted its LNG purchase option for Train 4, which entitles it to purchase 1.5mn tpy for a 20-year period.

NextDecade is still contemplating a decision on Phase 3 of the project, which would involve the construction of Trains 6-8 and raised the facility’s total production capacity to 48mn tpy.