LNG Spotlight: NextDecade
- Timothy Beggans
- Mar 4
- 2 min read
NextDecade Corporation (NASDAQ: NEXT) continues to gain momentum in the U.S. LNG sector, with its Rio Grande LNG project making significant strides. The company’s latest business update highlights construction progress, long-term sales agreements, and future expansion plans that could make Rio Grande LNG one of the largest LNG export terminals in the U.S.
Phase 1 Progress & Off-Takers
The first phase of the project includes Trains 1, 2, and 3, with a total nameplate capacity of 17.6 million tons per year (Mt/y). Train 1 is expected to start production in 2027. NextDecade has secured long-term sales agreements with several major off-takers, including:
Shell – 20-year agreement for 2 Mt/y
ENGIE – 15-year agreement for 1.75 Mt/y
TotalEnergies – 20-year agreement for 5.4 Mt/y
China Gas – 20-year agreement for 1 Mt/y
ENEOS – 15-year agreement for 0.92 Mt/y
Galp – 20-year agreement for 1 Mt/y
Future Expansion: Up to 10 Trains
NextDecade is actively working to commercialize Trains 4 and 5, which would bring Rio Grande LNG’s total capacity to 27 Mt/y. Beyond that, the company plans to pre-file with FERC for Train 6 in 2025 and is in the early stages of developing Trains 7 and 8. There is even potential for Trains 9 and 10, which would double the original project size.
Sustainability & CCS Initiative
NextDecade was previously prioritizing carbon reduction through its Carbon Capture and Storage (CCS) project. This initiative is currently on hold but would align with global efforts to reduce emissions while ensuring energy security.
With strong commercial backing and an ambitious expansion plan, NextDecade is set to play a critical role in U.S. LNG exports and global energy markets.
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