NextDecade, through its subsidiary Rio Grande LNG Train 4, has awarded an engineering, procurement and construction (EPC) contract to Bechtel Energy for the expansion of its liquified natural gas (LNG) facility in Texas, US.  

The contract, valued at approximately $4.3bn, covers the construction of Train 4 and associated infrastructure at the Rio Grande LNG facility at the Port of Brownsville. 

The total estimated project costs for Train 4 and its related infrastructure are projected to be between $6bn and $6.2bn.  

These figures are consistent with the per train cost of the facility's Phase 1, which is currently being constructed.  

NextDecade anticipates additional expenses including owner's costs, contingencies and financing fees, to range from $1.7bn to $1.9bn, based on current estimates and expected interest rates. 

NextDecade is aiming for a positive FID for Train 4 in the latter half of 2024.  

This decision is contingent upon securing sufficient commercial support and obtaining the necessary financing.  

The Rio Grande LNG project is designed to produce a less carbon-intensive form of LNG, with the first phase consisting of three liquefaction trains and a combined annual capacity of 17.5 million tonnes. 

The Rio Grande LNG project, once fully operational, is expected to have a production capacity of approximately 27 million tonnes per annum (mtpa).  

In June, Saudi Aramco entered into a non-binding heads of agreement with NextDecade.  

This deal involves NextDecade supplying LNG from the proposed Train 4, with Saudi Aramco agreeing to purchase 1.2mtpa of LNG on a free-on-board basis. 

In May, the Abu Dhabi National Oil Company (ADNOC) acquired an 11.7% stake in Phase 1 of the Rio Grande LNG project from Global Infrastructure Partners' investment vehicle.  

This investment also granted ADNOC an option for future equity participation in Trains 4 and 5.  

Additionally, ADNOC and NextDecade have signed a 20-year offtake agreement for 1.9mtpa from Train 4, subject to the FID.