NextDecade pens $4.3bn EPC contract with Bechtel for Rio Grande LNG Train 4

US LNG developer NextDecade Corporation announced on August 5 that its subsidiary, Rio Grande LNG Train 4, has executed a $4.3bn turnkey engineering, procurement, and construction (EPC) contract with Bechtel Energy for the construction of Train 4 and related infrastructure at the Rio Grande LNG facility in Texas.

NextDecade estimates that owner’s costs, contingencies, financing fees, and interest during construction will total approximately $1.7 to $1.9bn, based on current estimates and expected interest rates. The total estimated project costs for Train 4 and its related infrastructure are projected to be $6 to $6.2bn, aligning with the per train cost of the three-train Phase 1 at the Rio Grande LNG facility, which is currently under construction.

NextDecade is targeting FID of Train 4 in the second half of 2024. It sanctioned the $18.4bn first phase in July 2023, completing what it said was the largest greenfield energy project financing in US history. The first phase consists of the first three trains. The first three trains are also being built by Bechtel.

Recently, Abu Dhabi National Oil Company (ADNOC) acquired an 11.7% stake in Phase 1 (Trains 1-3) of the Rio Grande LNG export project. The Phase 1 equity stake was obtained through an investment vehicle of Global Infrastructure Partners (GIP), with ADNOC purchasing a portion of GIP’s existing equity interest.

NextDecade retains its interests in Phase 1 as well as its expansion capacity in Trains 4 and 5. This acquisition marks ADNOC’s first investment in the US.