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.
“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 on Monday.
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.
He said during the earnings call that NextDecade has been “in the market talking to potential customers for train six, and we’re seeing continued strong demand for incremental LNG supply in the 2030s and beyond.”
Completion, early cargoes
“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.
“We are also committed to managing our near-term market exposure by selling forward some of our expected portfolio volumes,” Schatzman said.
The overall project completion percentage for Trains 1 and 2 and the common facilities at the Rio Grande LNG Facility was 64.5 percent as of the end of January, while the overall project completion percentage for Train 3 was 39.8 percent.
Moreover, the overall project completion percentage for Train 4 was 7.8 percent, and the overall project completion percentage for Train 5 was 3.3 percent.
In early 2026, NextDecade began the marketing of early cargoes that it expects to produce prior to the commencement of its long-term LNG sale and purchase agreements (SPAs).
Year-to-date, NextDecade has entered into LNG sales agreements for the sale of over 175 TBtu of LNG on a free on board (FOB) basis, with fixed liquefaction fees that are expected to achieve a cargo margin, calculated as the FOB LNG sales price less NextDecade’s expected costs of natural gas feedstock and fuel, of over $3.00 per MMBtu.
This volume represents 33 percent of NectDecade’s expected open volumes from 2027 through early 2029.
