Rio Grande LNG gets FERC OK to proceed with construction of two trains

NextDecade's Rio Grande LNG has received approval from the US FERC to proceed with the construction of Train 4 and 5 at the site of its LNG export terminal in Texas.

FERC said on Thursday that it has granted Rio Grande LNG’s February 20 request to proceed with construction of Trains 4 and 5, as well as certain activities located outside battery limits (OSBL).

In 2019, FERC granted authorizations to Rio Grande LNG Train 4 and Rio Grande LNG Train 5.

On February 20 this year, Rio Grande submitted an implementation plan to “demonstrate compliance associated with certain conditions set forth in the appendix to this order.”

With this submittal, the Rio Grande entities requested authorization to proceed with the construction of Trains 4 and 5.

“Additionally, there are no changes in the design between the approved Trains 1, 2, 3, and OSBL and the request herein for Trains 4, 5, and certain activities in OSBL,” they said.

In July 2023, NextDecade took the final investment decision on the first three Rio Grande LNG trains.

In September and October last year, NextDecade made the final investment decisions on the fourth and fifth trains at its Rio Grande LNG facility.

This brings the total expected LNG production capacity under construction at Rio Grande LNG to approximately 30 mtpa.

Rio Grande LNG launch next year

Matt Schatzman, NextDecade chairman and CEO, recently said that the company expects to start LNG production at the first train of its Rio Grande LNG termina in the first half of 2027.

“With 30 million tonnes per annum (mtpa) of expected LNG production capacity under construction and the goal of doubling our capacity to 60 mtpa on site, growth at attractive returns continues to be a primary focus for the company,” Schatzman said in NextDecade’s quarterly update.

Moreover, he noted that NextDecade initiated the pre-filing process with the Federal Energy Regulatory Commission (FERC) for Train 6 in November 2025.

The company expects to file a full application for Train 6 by mid-year, and “we expect to advance the development of Trains 7 and 8 throughout the year,” Schatzman said.

“We are also laser-focused on continuing to construct Trains 1 through 5 at the Rio Grande LNG Facility safely, on budget, and on or ahead of schedule. Trains 1 through 3 (Phase 1) continue to track ahead of their guaranteed substantial completion dates, and we are preparing to begin commissioning activities at the facility this year, and we expect first LNG production in the first half of 2027,” he said.

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