NextDecade makes positive final investment decision on Rio Grande LNG Phase 1

NextDecade (NEXT) has made a positive final investment decision to construct the first three liquefaction trains – Phase 1 – at the company’s 27 million tons per annum Rio Grande LNG export facility in Brownsville, Texas. The company executed and closed a joint venture agreement for Phase 1 which included approximately $5.9B of financial commitments from Global Infrastructure Partners, GIC, Mubadala Investment, and TotalEnergies (TTE); committed to invest approximately $283M in Phase 1 including $125M of pre-FID capital investments into Phase 1; closed senior secured non-recourse bank credit facilities of $11.6B, consisting of $11.1B in construction term loans and a $500M working capital facility; and closed a $700M senior secured non-recourse private placement notes offering. The $18.4B project financing for RGLNG Phase 1, is the largest greenfield energy project financing in U.S. history. RGLNG issued the notice to proceed to Bechtel Energy to begin construction of Phase 1 under its lump-sum turnkey engineering, procurement, and construction contracts. Phase 1, with nameplate liquefaction capacity of 17.6 MTPA, has 16.2 MTPA of long-term binding LNG sale and purchase agreements. Under the joint venture agreement executed today, NextDecade will hold equity interests that entitle the company to receive up to 20.8% of the cash flows generated by Phase 1 during operations. Financial Investors and TTE will hold equity interests that entitle them to a minimum of 62.5% and 16.7% of the cash flows generated by Phase 1 during operations, respectively.