NextDecade Corp., a U.S. liquefied natural gas developer, announced this week that it has secured up to $1.8 billion in equity commitments from TotalEnergies and Global Infrastructure Partners (GIP) to finance a fourth liquefaction train at its Rio Grande LNG export terminal in Brownsville, Texas.
The 5.4 million metric tons per annum (mtpa) facility, known as Train 4, would expand the project’s role in cementing the United States’ position as the world’s largest LNG exporter.
NextDecade Corp. is awaiting a final order from the Federal Energy Regulatory Commission (FERC) on the project’s remand.
FERC staff issued a favorable environmental review last week, and a final decision is expected to be announced by November 20th.
TotalEnergies will invest about $300 million for a 10% stake in the Train 4 joint venture, while a GIP affiliate will provide up to $1.5 billion for a 50% interest, which will drop to 30% after agreed financial returns are met.
NextDecade Corp., through subsidiaries, will contribute up to $1.2 billion for the remaining 40%, which could rise to 60% under the same conditions.
French energy company TotalEnergies has a long-term agreement to purchase 1.5 million mtpa from Train 4 but has opted out of a similar deal for the proposed Train 5.
NextDecade Corp. has signed a $4.77 billion fixed-price construction contract for Train 4 with Bechtel, which is valid through September 15th.
The Rio Grande LNG facility currently under construction will have a capacity of 17.6 mtpa. Trains 4 and 5 would add another 10.8 mtpa combined.
Located at the southern tip of Texas, the Rio Grande LNG project is considered a major driver of export capacity growth. It provides Gulf Coast access to global energy markets while boosting local jobs and tax revenues in the Brownsville region.
William Dietrich, the Port Director and CEO of the Port of Brownsville, praised the LNG effort last year in an op-ed, writing that "this project is poised to provide much-needed economic growth, job creation, and community development in an area that has long been economically underprivileged."
