NextDecade Approves Final Investment Decision for Train 5 at Rio Grande LNG Project

NextDecade Corporation (NASDAQ:NEXT) is one of the Reddit stocks that will go to the moon. On October 16, NextDecade Corporation announced that it had achieved a positive final investment decision/FID on Train 5 at the Rio Grande LNG project. Concurrently, the company successfully closed financial transactions to fully fund Train 5 and its related infrastructure and issued a full notice to proceed to Bechtel Energy Inc. (Bechtel) under a lump-sum, turnkey engineering, procurement, and construction/EPC contract.

This milestone marks NextDecade’s second positive FID in just over a month. The Train 5 liquefaction train is expected to have an LNG production capacity of ~6 million tonnes per annum/MTPA, bringing the total expected capacity under construction at Rio Grande LNG to ~30 MTPA. Train 5 is commercially supported by 4.5 MTPA of 20-year LNG Sale and Purchase Agreements/SPAs with customers JERA, EQT Corporation, and ConocoPhillips.

The guaranteed substantial completion date for Train 5, as well as the date of first commercial delivery/DFCD under the Train 5 LNG SPAs, is anticipated in H1 2031. The total expected costs for Train 5 and its related infrastructure are ~$6.7 billion. This total includes EPC costs, owner’s costs, contingencies, financing fees, interest during construction, and other costs.

NextDecade Corporation (NASDAQ:NEXT) is an energy company that constructs and develops activities related to the liquefaction of natural gas in the US.

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Disclosure: None. This article is originally published at Insider Monkey.