NextDecade Secured Funding for Rio Grande Liquefaction Train

SEATTLE (Oil Monster): Leading U.S. liquefied natural gas (LNG) developer NextDecade announced that it has secured funding of up to $1.8 billion from TotalEnergies and Global Infrastructure Partners (GIP) towards financing the fourth liquefaction train at its Rio Grande LNG export project in Texas.

A final investment decision (FID) on the 5.4 million tonnes per annum (mtpa) Train 4 plant is anticipated to be facilitated by the funds. It should be mentioned that the project was approved by US federal officials last week after they finished the final environmental impact statement. Authorities are currently awaiting more environmental approval for the project.

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TotalEnergies is reportedly going to invest about $300 million for a 10% share in the Train 4 joint venture. Additionally, a GIP subsidiary will contribute up to $1.5 billion for a 50% stake that will eventually drop to 30%. NextDecade subsidiaries will also contribute up to $1.2 billion for a 40% stake, with the possibility of a 60% increase.

A long-term agreement for TotalEnergies to buy 1.5 mtpa of LNG from Train 4 has already been struck. It is anticipated that Train 4 and the next Train 5 will increase the Rio Grande LNG facility's capacity by 10.8 mtpa.

Bechtel and NextDecade have signed an EPC contract for Train 4, worth $4.77 billion.