NextDecade makes positive final investment decision on Rio Grande LNG Train 5

[LNG tanker ship]
Sky_Blue/iStock via Getty Images

NextDecade (NASDAQ:NEXT [https://seekingalpha.com/symbol/NEXT]) +3.9% post-market Thursday after saying it reached a positive final investment decision [https://seekingalpha.com/pr/20269772-nextdecade-announces-positive-final-investment-decision-and-financial-close-on-train-5-at-rio] on Train 5 of its Rio Grande liquefied natural gas export project in Texas, slightly more than a month after moving forward with a fourth train at the export terminal.

NextDecade (NASDAQ:NEXT [https://seekingalpha.com/symbol/NEXT]) also said the Train 5 FID came with a notice to proceed to Bechtel, the engineering, procurement and construction contractor for Rio Grande LNG.

Train 5 is commercially supported by 4.5 million metric tons/year of 20-year LNG agreements with JERA, EQT Corp., and ConocoPhillips; the planned date of the first commercial delivery from Train 5 is anticipated in H1 2031.

Train 5, which NextDecade (NEXT [https://seekingalpha.com/symbol/NEXT]) expects will cost ~$6.7 billion to build, has expected LNG production capacity of ~6 million metric tons/year, bringing the total expected LNG production capacity under construction at Rio Grande LNG to ~30 million tons/year.

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