NextDecade Greenlight $6.7 Billion Train 5 Expansion at Brownsville LNG Terminal

Houston-based energy company NextDecade has reached a final investment decision to expand its Rio Grande LNG export terminal currently under construction in Brownsville, Texas. The October 16 announcement marks the company’s second major investment approval in just over a month, adding a fifth liquefaction train to the sprawling 1,000-acre facility at the Port of Brownsville. 

The $6.7 billion expansion will increase the terminal’s total expected production capacity to approximately 30 million tonnes per annum of liquefied natural gas once all five trains become operational. Train 5 alone will contribute roughly 6 million tonnes annually, with first commercial deliveries anticipated in the first half of 2031.

The Scale of the Expansion 

NextDecade issued full notice to proceed to Bechtel Energy Inc. under a lump-sum, turnkey engineering, procurement and construction contract for Train 5 and related infrastructure. The project carries an estimated price tag of $6.7 billion, encompassing engineering costs, owner expenses, contingencies, financing fees, interest during construction and other associated costs. 

The company secured approximately $6.7 billion in committed financing to fully fund the project. This includes a $3.59 billion term loan facility, $500 million in private placement notes, $1.29 billion in equity commitments from NextDecade, and $1.29 billion in equity commitments from financial partners Global Infrastructure Partners (a part of BlackRock), GIC and Mubadala Investment Company. 

NextDecade Chairman and Chief Executive Officer Matt Schatzman addressed the milestone in an official statement released October 16. 

“Today, we are excited to announce that we have made a positive FID on Train 5, marking the second FID for NextDecade in just over a month. This achievement is the result of tireless effort by our team and our partners, and I would like to thank the entire NextDecade team, our equity partners, our Train 5 LNG customers, Bechtel, our financing partners, and our local stakeholders for helping bring Train 5 FID to fruition.”

Commercial Support and Long-Term Contracts 

Train 5 is commercially supported by 4.5 million tonnes per annum of 20-year LNG sale and purchase agreements with major energy companies JERA, EQT Corporation and ConocoPhillips. These binding contracts provided the commercial foundation necessary for NextDecade to secure project financing and reach a positive final investment decision. 

The agreements are structured on a free-on-board basis with pricing linked to the Henry Hub natural gas benchmark. ConocoPhillips committed to purchasing 1.0 million tonnes annually under its 20-year agreement announced in early September, while the remaining volumes are contracted to JERA and EQT Corporation. 

NextDecade holds an initial economic interest of 50 percent in Train 5, which will increase to 70 percent after financial investors achieve certain returns on their investments in the project.

Economic Impact on Brownsville and South Texas 

The construction phase is expected to generate thousands of temporary jobs across various trades including pipefitting, structural ironwork, welding, scaffolding, crane operation and rigging. Bechtel has been actively recruiting construction workers in the Brownsville area, with the combined workforce for all phases of Rio Grande LNG anticipated to reach approximately 5,000 workers at peak construction. 

David Keane, Senior Vice President for Policy and Corporate Affairs at NextDecade, emphasized the long-term nature of the facility’s presence in Brownsville during a February 2025 informational session. 

This facility will be here for a long, long time. As long as there is gas supply and demand, we will be producing LNG. For the next 50, 75, to 100 years, this facility will be operating and providing piping and welding jobs to the local community. 

Keane also noted that at least 35 percent of the workforce will be local, with 70 to 75 percent of the current workforce already coming from the region. More than 2,000 individuals were working on-site as of early 2025, with that number expected to grow to 5,000 by the end of the year. 

The Port of Brownsville has experienced remarkable growth tied to LNG and other industrial development. The port generated $12 billion in economic activity in 2023, a 400 percent increase from 2018, while supporting more than 10,000 local jobs and generating $1.1 billion for the local economy.

Final Thoughts 

The United States has solidified its position as the world’s largest exporter of liquefied natural gas. US LNG exports reached 11.9 billion cubic feet per day in 2024, with forecasts projecting further increases to approximately 14.6 billion cubic feet per day in 2025. 

The Trump administration lifted a temporary pause on new LNG export permits in January 2025, unleashing a wave of investment decisions across the industry. North American LNG export capacity is projected to increase from 11.4 billion cubic feet per day at the beginning of 2024 to 28.7 billion cubic feet per day in 2029 if projects currently under construction begin operations as planned. 

NextDecade’s Rio Grande LNG facility has capacity for up to 10 liquefaction trains on its site, potentially making it one of the largest LNG production and export facilities in the world. The company is currently building Phase 1, comprising the first three trains with a combined capacity of 17.6 million tonnes per annum, scheduled to begin operations in 2027. 

The September approval of Train 4 and the October approval of Train 5 demonstrate NextDecade’s rapid pace of development, positioning the facility to play a major role in supplying international markets with American natural gas for decades to come.