NextDecade, a U.S. liquefied natural gas (LNG) developer, announced on Monday that it has obtained up to $1.8 billion in equity commitments to finance a new liquefaction plant at its Rio Grande LNG export facility in Texas. The funding comes from TotalEnergies and Global Infrastructure Partners (GIP) for the project, referred to as Train 4, which will have a capacity of 5.4 million metric tons per annum (mtpa).

The TotalEnergies logo sits on the company's headquarters skyscraper in the La Defense business district near Paris, France, June 26, 2023.

The investment moves NextDecade closer to a final financial decision for Train 4, which will convert natural gas into a liquid form for international transport. TotalEnergies will provide approximately $300 million for a 10% stake in the Train 4 joint venture. A GIP affiliate will contribute up to $1.5 billion for a 50% interest, which may adjust to 30% upon meeting specific return thresholds. NextDecade’s subsidiaries will invest up to $1.2 billion for a 40% stake, potentially increasing to 60% after GIP achieves agreed returns.

The company is awaiting a final order from the Federal Energy Regulatory Commission (FERC) for the project. FERC completed its environmental impact statement, and its staff recommended approval last week. According to NextDecade’s email to Reuters on Monday: “Based on FERC’s published schedule, we anticipate a final order on the remand by November 20.”

NextDecade has secured a $4.77 billion fixed-price contract with Bechtel for Train 4’s construction, valid until September 15. TotalEnergies has also signed a long-term agreement to purchase 1.5 million metric tons of LNG annually from Train 4, though it has not committed to similar arrangements for the proposed Train 5 facility.

The Rio Grande LNG facility currently has a capacity of 17.6 mtpa. The development of Trains 4 and 5, with a combined additional capacity of 10.8 mtpa, supports the U.S. position as a leading global LNG exporter.