NextDecade has revised the pricing on an existing EPC contract with Bechtel Energy for Train 4 at the Rio Grande LNG facility in Texas and signed a new EPC contract with the company for Train 5, NextDecade announced on Thursday.
Under the updated contract for Train 4, NextDecade subsidiary Rio Grande LNG Train 4 will pay Bechtel approximately USD 4.8 billion for EPC work. Bechtel was first awarded the lump-sum, turnkey EPC contract for the Brownfield, Texas, facility in August 2024 at a value of around USD 4.3 billion.
In parallel, NextDecade agreed to pay Bechtel about USD 4.3 billion for EPC on the project’s fifth train through subsidiary Rio Grande LNG Train 5. The pricing of both contracts is valid until September 15, 2025.
Owner’s costs, contingencies, financing fees and interest during construction have been revised up from previous estimates and are expected to lie between USD 1.8 billion-2.0 billion for each train.
NextDecade said that it has completed the commercialisation of Train 4 and has started arranging financing. The company is aiming to reach a FID on Train 4 before the pricing validity expires.
Regarding Train 5, NextDecade recently secured a 20-year, 2.0 million tonnes per year (tpy) LNG offtake agreement with Japan’s JERA and is pursuing long-term supply contracts for an additional 2.5 million tpy to support a positive FID within the same timeframe.
Source: theenergyyear.com