NextDecade Corporation has reached another major milestone at its Rio Grande LNG expansion project in Brownsville, Texas, announcing a positive final investment decision (FID) for Train 5 and the completion of financing to fully fund construction. The company has also issued a full notice to proceed to Bechtel Energy Inc., marking the official start of work on the new liquefaction unit and related infrastructure.
The decision, announced on October 16, 2025, underscores the continued buildout of one of the largest LNG export facilities in North America. Train 5 will add approximately 6 million tonnes per annum (MTPA) of LNG production capacity, raising the total under construction at the Rio Grande site to about 30 MTPA.
“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,” said Matt Schatzman, Chairman and CEO of NextDecade. “This achievement is the result of tireless effort by our team and partners… bringing Train 5 FID to fruition.”
Fully Financed $6.7 Billion Expansion
The total project cost for Train 5 and supporting infrastructure is estimated at $6.7 billion, covering EPC expenses, owner’s costs, contingencies, financing fees, and interest during construction. Funding for the expansion has been secured through a combination of debt and equity:
$3.59 billion in term loan facilities under Rio Grande LNG Train 5, LLC;
$500 million raised through private placement notes;
$1.29 billion in equity commitments from NextDecade; and
$1.29 billion in equity from Global Infrastructure Partners (part of BlackRock), GIC, and Mubadala Investment Company.
At financial close, NextDecade also received $117 million from Rio Grande LNG Train 5, LLC to cover development and management service costs.
The company currently holds a 50% economic interest in Train 5, which will rise to 70% once its financial partners achieve targeted returns.
Long-Term Offtake Agreements in Place
Commercially, Train 5 is backed by 4.5 MTPA of long-term sale and purchase agreements with JERA, EQT Corporation, and ConocoPhillips. Substantial completion and first commercial deliveries are targeted for the first half of 2031, according to NextDecade.
Financing Structure with Minimal Share Impact
NextDecade emphasized that its equity contribution to Train 5 was financed without materially affecting common shares outstanding. The company drew on $233 million in cash and secured $1.33 billion in term loans, including:
A $729 million FinCo Loan, bearing interest at SOFR plus 350 basis points and featuring cancellable, penalty-free prepayment terms; and
A $600 million SuperFinCo Loan, disbursed at financial close with a 13% interest rate, payable in kind until one year after Train 5 completion and callable at par beginning September 2030.
EPC and Project Timeline
Bechtel Energy, which is executing the entire Rio Grande LNG complex under a lump-sum, turnkey EPC contract, has now received full notice to proceed on Train 5. The contractor will handle engineering, procurement, and construction for the liquefaction train and associated infrastructure.
When completed, the Rio Grande LNG project will stand among the largest LNG export developments in the United States, with five trains representing roughly 30 MTPA of total capacity.
Next Steps
NextDecade will host a webcast and investor conference call on October 17, 2025, at 10:00 a.m. Central Time to discuss the Train 5 FID, financing details, and project outlook. Presentation materials and a replay will be available on the company’s investor website.
Other Recent Developments
NextDecade’s latest announcement follows another major milestone earlier in the year, when the company reached a final investment decision on Train 4 at the Rio Grande LNG site. That decision, made in September 2025, advanced the next phase of the project’s expansion and included new equity participation from TotalEnergies, which acquired a 10% interest in the Train 4 joint venture. Together, the two FIDs mark continued momentum in the multibillion-dollar buildout of NextDecade’s Rio Grande LNG export complex in Brownsville, Texas.
Project Factsheet: Final Investment Decision and Financial Close on Train 5 at Rio Grande LNG
Location: Brownsville, Cameron County, Texas, USA
Developer: NextDecade Corporation
EPC Contractor: Bechtel Energy Inc.
Estimated Cost: $6.7 billion
Type: LNG Liquefaction Expansion (Train 5 and related infrastructure)
Planned Capacity: 6 million tonnes per annum (MTPA)
Total Capacity at Full Buildout: 30 MTPA (Trains 1–5)
Key Offtakers: JERA, EQT Corporation, ConocoPhillips
Financial Close Date: October 16, 2025
Construction Start: October 2025 (Full Notice to Proceed Issued)
Target Completion: First Half of 2031
Equity Partners: Global Infrastructure Partners (BlackRock), GIC, Mubadala Investment Company
NextDecade Ownership: 50% initially, increasing to 70% post-return thresholds
