NextDecade to invest $6.7 at Texas LNG plant as Fed regulators quicken reviews

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(The Center Square) – LNG producer NextDecade has reached a positive Final Investment Decision FID) on a fifth liquefaction train at its Rio Grande export facility near Brownsville, Texas, the company said.

The decision comes just five weeks after NextDecade announced a positive investment on a fourth liquefaction train at the Rio Grande LNG facility, reflecting shifting regulatory priorities and more rapid decisions by project developers. 

President Donald Trump, on the day he was inaugurated, issued Executive Order 14154, "Unleashing American Energy," which aims to streamline permitting processes on energy infrastructure development as a matter of national security.

The president’s order directed the Secretary of Energy to immediately resume reviews of all pending applications for LNG export projects to countries without a free-trade agreement with the U.S., reversing a year-long “pause” in regulatory approvals initiated by the Biden administration.

On August 29, the Federal Energy Regulatory Commission (FERC) issued a final order affirming an earlier determination that the Rio Grande LNG terminal including trains four and five was in the public interest, clearing the last major regulatory hurdle. FERC’s order came about three months before the previously scheduled release date, according to S&P Global.

NextDecade projects the total cost of Train 5 and related infrastructure at about $6.7 billion. Train 5 is commercially supported by 20-year supply agreements with JERA, EQT Corp, and ConocoPhillips for a total of 4.5 million tons of LNG each year, with deliveries expected in the first half of 2031.

The Rio Grande LNG facility has potential liquefaction capacity of approximately 48 million tons per year, according to NextDecade. Trains 6-8 are in development and beginning the permitting process, and there is sufficient space at the site for development of up to 10 liquefaction trains, according to  NextDecade.