NextDecade Announces Positive Final Investment Decision and Financial Close on Train 5 at Rio Grande LNG

NextDecade Corporation announced that it has made a positive final investment decision (FID) on Train 5 at Rio Grande LNG, closed financial transactions to fully fund Train 5 and related infrastructure, and issued full notice to proceed to Bechtel Energy Inc. (Bechtel) for Train 5.
“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, NextDecade’s Chairman and Chief Executive Officer. “This achievement is the result of tireless effort by our team and our partners, and I would like to thank the entire NextDecade team, our equity partners, our Train 5 LNG customers, Bechtel, our financing partners, and our local stakeholders for helping bring Train 5 FID to fruition.”
Positive FID Achieved on Train 5
On October 16, 2025, NextDecade made a positive FID and issued full notice to proceed to Bechtel under the Company’s lump-sum, turnkey engineering, procurement, and construction (EPC) contract for Train 5 and related infrastructure. Train 5 has expected LNG production capacity of approximately 6 million tonnes per annum (MTPA), bringing the total expected LNG production capacity under construction at Rio Grande LNG to approximately 30 MTPA.
Train 5 is commercially supported by 4.5 MTPA of 20-year LNG Sale and Purchase Agreements (SPAs) with JERA, EQT Corporation, and ConocoPhillips. The guaranteed substantial completion date for Train 5, as well as the date of first commercial delivery (DFCD) under the Train 5 LNG SPAs, is anticipated in the first half of 2031.
Project costs for Train 5 and related infrastructure are expected to total approximately $6.7 billion, including EPC costs, owner’s costs, contingencies, financing fees and interest during construction, and other costs1.
To fully fund the expected costs for Train 5 and related infrastructure, the Company successfully closed on approximately $6.7 billion in committed financing, including:
- $3.59 billion term loan facility at Rio Grande LNG Train 5, LLC;
- $0.50 billion private placement notes at Rio Grande LNG Train 5, LLC;
- $1.29 billion in equity commitments from NextDecade; and
- $1.29 billion in equity commitments from partners Global Infrastructure Partners, a part of BlackRock (GIP), GIC, Mubadala Investment Company (together, the Financial Investors).
NextDecade received $117 million at financial close from Rio Grande LNG Train 5, LLC for development costs and management services.
NextDecade has an initial economic interest of 50% in Train 5, which will increase to 70% after the Financial Investors achieve certain returns on their investments in Train 5.
NextDecade Train 5 Equity Commitment Financed with No Material Impact to Common Shares Outstanding
NextDecade used $233 million of cash on hand and entered into a total of $1.33 billion in term loans to finance its portion of Train 5 equity funding commitments without a material impact to NextDecade common shares outstanding.
The FinCo Loan is a $729 million delayed draw bank facility that bears interest at SOFR plus 350 basis points. Commitments under the FinCo Loan are cancellable and can be prepaid without penalty.
The SuperFinCo Loan is a $600 million term loan, with net proceeds disbursed at financial close. The SuperFinCo loan bears interest at 13%, with interest payable in kind until one year after Train 5 completion, and is callable at par beginning in September 2030.
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