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NextDecade signs 20-year LNG deal with EQT for 1.5 MTPA from Train 5

NextDecade has signed a liquefied natural gas supply agreement with EQT for 1.5 million tonnes annually from Rio Grande LNG Train 5, pending a final investment decision.

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NextDecade Corporation has formalised a liquefied natural gas (LNG) sale and purchase agreement with EQT Corporation for a volume of 1.5 million tonnes per annum over a 20-year period. The deal covers deliveries from Train 5 of the Rio Grande LNG terminal in Texas. The agreement is conditional on NextDecade reaching a positive final investment decision (FID) for this fifth liquefaction train.

The transaction is based on a free on board structure with pricing indexed to Henry Hub, the benchmark for natural gas in the United States. EQT Corporation is one of the largest natural gas producers in the country. This agreement marks a significant step forward in the commercialisation of the Rio Grande LNG infrastructure, according to NextDecade’s management.

Progress towards final investment decision

Alongside this commercial agreement, NextDecade has extended the price validity period under its engineering, procurement and construction (EPC) contract with Bechtel Energy Inc. for Train 5 until November 15, 2025. The total projected cost for the construction of Train 5 and associated infrastructure stands at approximately $6.7 billion.

This estimate includes final EPC costs, owner’s costs, contingencies, financing fees, interest during construction and proportional usage charges for the common facilities at the Rio Grande LNG terminal. The company expects to complete Train 5 commercialisation by the third quarter of 2025.

Targeting an additional 1 MTPA to reach FID threshold

NextDecade has already secured long-term agreements for 3.5 MTPA of LNG from Train 5. It is now aiming to finalise an additional 1 million tonnes per annum contract to support a positive investment decision. Subject to securing sufficient financing, the company anticipates reaching a positive FID for Train 5 in the fourth quarter of 2025, prior to the expiry of the revised EPC price validity.

At the same time, the company continues to expect a final investment decision for Train 4 of the Rio Grande LNG terminal by September 15, 2025, also dependent on adequate financing.

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