With billions in new deals, Brownsville’s LNG terminal races toward global scale

BROWNSVILLE — NextDecade Corporation says construction of its multibillion-dollar Rio Grande LNG export terminal is advancing faster than expected, according to its third-quarter business update, which detailed new financing, permits, and long-term supply deals that move the Brownsville project closer to full buildout.

The Houston-based company said it officially reached final investment decisions (FIDs) on Train 4 on Sept. 9 and Train 5 on Oct. 16 at its 1,000-acre site along the Brownsville Ship Channel. Each new train carries a price tag of about $6.7 billion and will add another 6 million tonnes per year of production capacity once completed. Together with the first three trains already under construction, the terminal is now expected to produce roughly 30 million tonnes of liquefied natural gas annually—about 5 percent of projected global supply in the early 2030s.

“These last few months have been transformative for NextDecade,” said Chairman and CEO Matt Schatzman in a statement. “We’ve shown that we can execute on expansion capacity at Rio Grande LNG in a way that delivers attractive returns and maximizes projected cash flow on a per-share basis.”

Two new trains, billions in backing

The two new phases mark a continuation of the company’s aggressive construction schedule on the north shore of the ship channel, where Houston-based Bechtel Energy serves as the main contractor. Engineering and procurement work for the first three trains is nearly complete, and construction crews are now erecting structures, pouring concrete and raising the roofs on the first two massive LNG storage tanks.