EPC Contracts Finalized for Trains 4 and 5 at Rio Grande Facility in Texas
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By Simon West
NextDecade has finalized contracts with Bechtel Energy for the construction of two liquefaction trains at the Rio Grande liquified natural gas (LNG) facility in Brownsville, Texas.
The deals include a US$4.77 billion updated EPC contract for train 4 and a newly signed US$4.32 billion contract for train 5, both covering full construction and related infrastructure.
Pricing validity for both trains are valid through September 15, 2025, NextDecade said, adding that it expects owners’ costs, financing, contingencies and interest during construction to add US$1.8-US$2.0 billion per train.
Train 4 has been fully commercialized, and financing efforts are underway.
“Subject to obtaining adequate financing, NextDecade expects to achieve a positive FID (final investment decision) on train 4 before the end of the pricing validity period for the train 4 EPC contract,” the company said in a statement.
For train 5, NextDecade has signed a 20-year offtake deal with Japan-based energy company JERA and is working to secure additional long-term contracts to support a positive FID.
Room for up to 10 Trains
About 48 million metric tonnes per year of potential liquefaction capacity is under construction or development at the Rio Grande LNG facility. Construction of Phase 1 (trains 1-3) began in late 2023, with start-up slated for 2027.
According to NextDecade, the Brownsville site has sufficient space for the development of up to 10 liquefaction trains, making Rio Grande potentially one of the largest LNG production and export facilities in the world.
The Houston-based developer is also looking to build a carbon capture and storage (CCS) project at the site to reduce emissions.
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PHOTO: Digital rendering of the completed Rio Grande LNG project. CREDIT: NextDecade
