NextDecade receives positive FID for Train 5 of the Rio Grande LNG Project in Texas

NextDecade, a U.S. producer of liquefied gas, announced on Thursday that it had made a final investment decision in favor of the fifth liquefaction train (also known as a liquefaction station) for its Rio Grande project.

The company's shares rose by over 4% during extended trading as this announcement marked the 5th positive FID of an LNG project in the U.S., the world's biggest exporter of super-chilled fuel.

After President Donald Trump lifted his moratorium on new LNG export permits shortly after assuming office in January, the U.S. LNG industry has seen an increase in commercial activity.

Once they have enough contracts to finance the project, LNG developers usually reach a FID for their projects.

The company stated that Train 5 is expected to have a production capacity of approximately 6 million tonnes of LNG per year. This brings the total LNG production under construction at Rio Grande LNG up to 30 MTPA.

The company said that the completion date of Train 5 and the first commercial delivery date in relation to the Train 5 LNG contracts is expected to be the first half 2031.

The total project cost associated with Train 5 is expected to be approximately $6.7 billion.

Train 5 is supported commercially by 4.5 MTPA in 20-year contracts with

EQT Corp

ConocoPhillips is a company.

TotalEnergies has a 17.1% share in NextDecade and decided to not invest in Train 5 as they reassess their global LNG strategy.

NextDecade September

Positive FID for its third liquefaction facility in Texas. The plant is expected to be finished in the second half 2030. Reporting by Sumit S. Saha, Bengaluru. Editing by Shrey Biswas.

(source: Reuters)