NextDecade Snags $4.6B Financing for Rio Grande LNG Growth

HOUSTON — NextDecade Corporation has locked in approximately $4.6 billion in financing tied to its Rio Grande LNG (RGLNG) project in South Texas, strengthening the balance sheet for Phase 1 while advancing expansion plans. The moves, detailed in the company’s second-quarter 2026 business update released July 30, 2026, refinance existing construction debt and free bank capacity for further growth, including Train 6.

In June 2026, Rio Grande LNG Intermediate HoldCo Borrower, LLC entered a $1.0 billion term loan facility (7.05% interest, maturing June 2033). In July 2026, Phase 1 LLC (covering Trains 1–3) completed a $3.5 billion senior secured notes offering in four tranches: $1.0 billion at 5.25% due 2031, $500 million at 5.50% due 2034, $1.25 billion at 5.75% due 2036, and $750 million at 6.15% due 2041. Net proceeds repaid outstanding borrowings under Phase 1 credit facilities. Related interest-rate swap settlements generated about $109 million, also applied to reduce debt. Additional note issuances under Train 5’s $500 million private placement continued, bringing total issued to $350 million by late July.

These steps convert shorter-term bank debt into longer-term, investment-grade-style capital markets funding. Hart Energy reported the package as $4.6 billion financing supporting Rio Grande LNG growth, including positioning for a sixth train.

Project Progress Ahead of Schedule

• Construction on Trains 1–5 continues under Bechtel’s lump-sum turnkey EPC contracts using Honeywell AP-C3MR technology. As of
• June 2026:Trains 1–2: 74.0% complete overall (engineering 99.1%, procurement 97.8%, construction 58.9%).
• Train 3: 50.4% complete.
• Train 4: 15.5% complete.
• Train 5: 9.4% complete.

The main substation was energized in May 2026. First feed gas is expected in the second half of 2026, with first LNG from Train 1 in the first half of 2027—ahead of the guaranteed schedule and within budget. Over 6,000 workers are on site daily. Phase 1 plus Trains 4 and 5 will deliver roughly 30 MTPA of capacity, supported by four storage tanks and two marine berths.

NextDecade filed a formal FERC application for Train 6 (plus an additional berth) in May 2026 and a DOE export authorization application in June. FERC’s environmental review schedule targets a final EIS by June 25, 2027, supporting a potential FID in the second half of 2027. A reservation agreement with Baker Hughes for Train 6 refrigeration compressors is in place. The site can ultimately host up to 10 trains (~48 MTPA currently under construction or in development).

Matt Schatzman, NextDecade Chairman and CEO, stated: “Construction at Rio Grande LNG continues to progress positively toward first LNG, ahead of schedule and within budget, while maintaining robust safety standards. We are focused not only on bringing our first five trains online, but also on progressing our expansion capacity to maximize NextDecade’s impact in bringing much-needed secure, reliable, and affordable LNG to customers around the world.”

Natural Gas Supply to the Terminal

Feed gas will be delivered primarily via the Rio Bravo Pipeline, a ~137-mile interstate system from the Agua Dulce Hub (accessing abundant Permian Basin and Eagle Ford Shale supplies) to the Port of Brownsville site. Designed for up to 4.5 billion cubic feet per day, the pipeline is owned and operated by Enbridge (after its 2020 acquisition of the project from NextDecade). FERC lists it as under construction; full operations are expected later in 2026, aligning with the terminal’s first-gas timeline. The Brownsville location offers proximity to these resources, an uncongested waterway, lower historical severe-weather risk relative to other Gulf Coast sites, skilled local labor, and favorable geotechnical conditions.

NextDecade’s Customers and Offtake Portfolio

Long-term 20-year sales and purchase agreements (SPAs), mostly Henry Hub-indexed and free-on-board, underpin the project:

• Phase 1 (Trains 1–3): Approximately 16.2 MTPA contracted, including TotalEnergies (5.4 MTPA and equity partner), Shell, ENN LNG, Engie, ExxonMobil LNG Asia Pacific, Guangdong Energy Group, China Gas Hongda, Galp, and Itochu.
• Train 4: Fully commercialized at 4.6 MTPA with ADNOC (1.9 MTPA plus Phase 1 equity), Saudi Aramco (1.2 MTPA), and TotalEnergies (1.5 MTPA). TotalEnergies also holds equity in Train 4.
• Train 5: Commercialized with JERA (2.0 MTPA), EQT (1.5 MTPA), ConocoPhillips (1.0 MTPA), and additional volumes supporting FID.

Equity partners include TotalEnergies, ADNOC/XRG, Global Infrastructure Partners (BlackRock), GIC, and Mubadala. These high-credit-quality counterparties provide a strong commercial foundation across Asia, Europe, and other markets.

Global LNG Market Context

The worldwide LNG market is entering a period of accelerated supply growth in 2026. The International Energy Agency forecasts global LNG supply rising more than 7% (over 40 bcm), the fastest pace since 2019, driven largely by North America, with demand growth near 2% led by China and emerging Asian markets.

Shell’s LNG Outlook 2026 projects long-term demand climbing about 65% by 2050 to nearly 700 million tonnes per year. Near-term views differ: some analysts (Bernstein) see 2026 demand around 441 MTPA with substantial new capacity (roughly 45–50 MTPA annually through the late 2020s) potentially shifting the market longer, while others highlight structural growth in Asia offsetting any European plateau. U.S. projects like Rio Grande remain competitive due to Henry Hub-linked pricing, low production costs, and reliable supply.

NextDecade’s progress—on-schedule construction, diversified offtake, secured financing, and pipeline infrastructure—positions Rio Grande LNG to deliver affordable, secure energy as global demand expands, particularly in Asia.