NextDecade Seals $4.3bn EPC Agreement with Bechtel for Rio Grande LNG Facility

NextDecade Corporation has entered into a definitive lump sum turnkey Engineering, Procurement, and Construction (EPC) contract with Bechtel Energy Inc. for the development of Train 4 and associated infrastructure at its Rio Grande LNG facility. This strategic alliance represents a pivotal juncture in the progression of NextDecade's LNG export project. By entrusting Bechtel with the EPC responsibilities, the company is leveraging the contractor's extensive experience and proven track record in executing complex energy infrastructure projects. This agreement solidifies NextDecade's commitment to advancing its LNG export capabilities and contributing to the global energy market.

NextDecade has entered into a contract with Bechtel for the construction of Train 4 at the Rio Grande LNG facility, agreeing to a payment of approximately $4.3 billion. The price validity for this contract is assured through December 31, 2024. Additionally, NextDecade estimates that owner’s costs, contingencies, financing fees, and interest during the construction phase will amount to roughly $1.7-$1.9 billion, factoring in current estimates and anticipated interest rates.

Consequently, the overall projected cost for Train 4 and its associated infrastructure is anticipated to be between $6.0-$6.2 billion. This estimation aligns with the per-train cost of the existing three-train Phase 1 at the Rio Grande LNG Facility, which is presently under construction.

NextDecade is aiming to secure a green light for Train 4 development in the latter half of 2024. To achieve this, they need to secure sufficient commercial support and obtain the required financing. This will enable them to move forward with the construction of Train 4 and its associated infrastructure. The success of this project is crucial for expanding the capacity of the Rio Grande LNG facility and enhancing NextDecade's position in the global LNG market.

NextDecade Corporation is a pioneering energy solutions company dedicated to driving the global energy transition towards a net-zero future. The company is at the forefront of developing and commercializing innovative LNG and carbon capture technologies. Through its subsidiaries, NextDecade is executing a strategic growth plan centered around the construction of a large-scale LNG export facility and a premier carbon capture and storage project in North America. These initiatives position the company as a key player in the global energy landscape.

Beyond its core projects, NextDecade is actively collaborating with industrial partners to deploy its proprietary carbon capture technologies. By offering cost-effective and scalable solutions, the company is empowering industries to significantly reduce their carbon footprints. NextDecade's commitment to technological advancement and sustainable practices underscores its role as a catalyst for a cleaner, more resilient energy future.