NextDecade secures funding for Rio Grande 1st phase, targets July FID

US LNG developer NextDecade Corporation has received binding commitments from a consortium of lenders to finance the construction of the first three liquefaction trains at the Rio Grande LNG export facility in Texas, it said on June 29. This enables NextDecade to announce a positive final investment decision (FID) for Phase 1, expected in early July.

Phase 1 of the project involves the construction of liquefaction capacity totaling 17.61mn metric tons/year (mn mt/yr). NextDecade has already secured long-term sale and purchase agreements for 16.2mn mt/yr, equivalent to 92% of Phase 1's nameplate capacity. The lender group, in combination with projected project equity funding, ensures the financial viability of the FID for Phase 1, the company said.

The Rio Grande LNG export facility, located near Brownsville, Texas, is envisioned as a five-train complex with a total capacity of 27mn mt/yr. The first phase involves three trains while the second phase involves the construction of two trains. Developed by NextDecade's subsidiary, NEXT Carbon Solutions, the facility incorporates carbon capture and storage capabilities. It is anticipated that approximately 5mn mt/yr of CO₂ emissions will be captured and permanently stored, making Rio Grande LNG the first and only U.S. LNG project to achieve a CO₂ emissions reduction of over 90%.

France's TotalEnergies earlier this month announced it will acquire a 17.5% interest in NextDecade in three tranches for a total of $219mn.