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.

Train 4 and Train 5 have guaranteed completion dates in 2030 and 2031, respectively. The company said the first compressor and turbine equipment for Train 1 has already arrived on-site—evidence, Schatzman noted, that “Phase 1 continues to progress safely, on budget, and ahead of schedule.”

To finance the expansion, NextDecade and its partners closed a combined $13.4 billion in project funding this fall. The deals involve a mix of private-equity investors, including Global Infrastructure Partners, GIC of Singapore, Mubadala Investment Company of Abu Dhabi, and TotalEnergies of France, along with major bank loans and bond offerings.

Global buyers line up

The company has also secured new long-term customers for its future output. In September, NextDecade announced 20-year supply agreements with EQT Corporation and ConocoPhillips. The contracts will provide a total of 2.5 million tonnes of LNG per year from Train 5, priced to the U.S. Henry Hub natural-gas index and shipped directly from Brownsville.

The sales commitments are significant, analysts say, because they lock in a steady revenue stream even before the trains are operational—a key step in attracting investors and lenders for multibillion-dollar projects.

A long-term anchor for Brownsville’s energy corridor

The Rio Grande LNG site stretches across about 1,000 acres and boasts 15,000 feet of frontage on the ship channel, giving it direct access to Gulf export routes. Its location near the Permian Basin and Eagle Ford Shale—two of the country’s largest natural-gas producing regions—offers a steady feedstock supply.

When complete, the first five trains will include four full-containment LNG tanks, two large jetties for loading export carriers, and extensive utilities and road infrastructure. Company officials say there’s enough room on site to add up to 10 trains in total, and they are already seeking federal approval to build three more, labeled Trains 6 through 8.

The Federal Energy Regulatory Commission reaffirmed the project’s federal permit earlier this year, clearing the way for continued construction and reducing the likelihood of legal challenges that had previously delayed progress.

What comes next

For South Texas, the new financing and construction activity could extend Brownsville’s industrial boom well into the next decade. The buildout is expected to support thousands of construction jobs and expand opportunities for contractors, suppliers and logistics firms tied to the Port of Brownsville.

NextDecade’s longer-term vision—potentially doubling production at the site to 60 million tonnes per year—would cement the region as a major hub in the global natural-gas trade.

“We are dedicated to completing the first five trains safely and delivering on the projections we’ve provided to shareholders and other stakeholders,” Schatzman said.

The company plans to pre-file federal paperwork for Train 6 before the year ends and submit a full application in 2026.