HomeNewsNextDecade Weighs Additional Liquefaction Trains for Rio Grande LNG

NextDecade Weighs Additional Liquefaction Trains for Rio Grande LNG

3/3/2025

(P&GJ) — NextDecade is expanding its Rio Grande LNG project in Brownsville, Texas, with plans for additional liquefaction trains beyond the five currently under development, the company announced in its fourth quarter 2024 business update on Feb. 28.

The company is preparing to seek federal approval for Train 6 this year while advancing early-stage plans for Trains 7 and 8.

“Today, we are also pleased to announce development plans for expansion capacity at the Rio Grande LNG Facility site beyond Trains 1 through 5,” Matt Schatzman, NextDecade chairman and CEO, said. “We are currently developing and preparing to start the permitting process for Train 6 and starting the development of Trains 7 and 8. Train 6 is being developed inside the existing levee at the site, which is expected to provide advantages in site preparation and expected economics. Additionally, we expect to explore options for the development of up to two additional trains at our site beyond Train 8.”

Construction Progress NextDecade reported that Phase 1 of the Rio Grande LNG facility, which includes Trains 1 through 3, remains on schedule and budget under its engineering, procurement, and construction (EPC) contract with Bechtel Energy Inc.

  • As of January 2025, Trains 1 and 2, along with common facilities, are 38.1% complete. Engineering is 84.9% complete, procurement 69.2%, and construction 10.6%.
  • Train 3 is 15.3% complete, with engineering at 33.5%, procurement at 32.8%, and construction at 0.4%.
  • Bechtel has completed procurement of critical materials for Phase 1, with continued work on underground structures, loading berths, and other site infrastructure.

Future Expansion NextDecade is developing Train 6 within the existing levee, expecting advantages in site preparation and economics. The company plans to submit a pre-filing application with the Federal Energy Regulatory Commission (FERC) this year, followed by a full application in early 2026. Trains 7 and 8, expected to add 12 MTPA of LNG capacity, will be built outside the existing levee, with potential for additional trains beyond Train 8.

Financial Update In December 2024, NextDecade’s subsidiary, Rio Grande LNG Super Holdings, secured a $175 million senior secured loan to refinance debt and support project expansion. The loan bears a 12% interest rate and matures in six years. As part of the agreement, the company issued warrants for up to 7.2 million shares of its common stock at exercise prices of $7.15 and $9.30 per share.

Regulatory Developments The U.S. Court of Appeals for the D.C. Circuit vacated FERC’s reauthorization of the Rio Grande LNG project, requiring a supplemental Environmental Impact Statement (EIS). FERC plans to issue a draft EIS in March 2025, a final version by July, and a decision by November. NextDecade continues construction on Phase 1 and is pursuing legal options to maintain regulatory approvals for Trains 4 and 5.

The Author

Mary Holcomb - Pipeline & Gas Journal,

Mary Holcomb is the Digital Editor & Operations Manager at Gulf Energy Information, overseeing the Pipeline & Gas Journal, World Oil, and Underground Infrastructure brands. With over 5 years of experience, she drives digital content strategy and operations for these industry-leading publications.

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