NextDecade’s FID on Train 5 marks another milestone in the company’s phased expansion of its Rio Grande LNG export complex in Brownsville, Texas. The decision, announced October 16, 2025, follows closely after the Train 4 FID and cements Bechtel’s role as the EPC contractor for all five LNG trains now under construction.
Under the new lump-sum turnkey EPC contract, Bechtel will execute engineering, procurement, and construction for Train 5 and its associated infrastructure. Once complete, the fifth train will add another 6 million tonnes per annum (MTPA) of LNG production capacity, lifting Rio Grande LNG’s total output under construction to 30 MTPA.
Commercial and financing structure
Train 5 is underpinned by long-term offtake commitments totaling 4.5 MTPA through 20-year LNG sale and purchase agreements with JERA, EQT Corporation, and ConocoPhillips. The guaranteed substantial completion and first commercial delivery are targeted for the first half of 2031.
The $6.7 billion project cost covers EPC execution, owner’s costs, contingencies, financing, and interest during construction. To fully fund the package, NextDecade has arranged a mix of debt and equity comprising:
$3.59 billion term loan facility for Rio Grande LNG Train 5, LLC
$500 million private placement notes
$1.29 billion in equity from NextDecade
$1.29 billion in equity from Global Infrastructure Partners (part of BlackRock), GIC, and Mubadala Investment Company
NextDecade initially holds a 50% economic interest in Train 5, rising to 70% once financial partners achieve target returns.
EPCIntel.com analysis: breakdown of key EPC opportunities
According to EPCIntel.com’s LNG construction benchmark data, Bechtel’s EPC contract for Train 5 is estimated at roughly $4.8–$5.0 billion, accounting for around 70–75% of total project costs. The remaining balance covers owner’s and financing costs.
Typical capital distribution across major packages for a single 6 MTPA LNG train of this scale is expected to align with:
- LNG process units (cryogenic trains, gas treatment, and liquefaction modules): $2.8–3.0 billion
- Storage and loading systems (LNG tanks, jetty, and marine works): $600–700 million
- Utilities and offsites (power generation, water, flare, and control systems): $500–600 million
- Common infrastructure and tie-ins to existing trains: $300–400 million
- Subcontracts for piping, E&I, and civil works: $400–500 million
Bechtel’s U.S. Gulf Coast supply chain is expected to absorb much of this spend, with strong opportunities for local subcontractors in module fabrication, instrumentation, and marine works.
Strategic importance for NextDecade and the U.S. LNG market
With Train 5 now moving into full construction, NextDecade strengthens its position among the next wave of U.S. LNG exporters alongside Venture Global and Cheniere. Once all five trains are operational, Rio Grande LNG’s total capacity will exceed 30 MTPA, making it one of the largest single-site LNG facilities globally.
The company’s modular, train-by-train financing approach has allowed it to de-risk expansion phases while maintaining equity flexibility. Importantly, the financing of NextDecade’s share through a mix of cash and term loans ensures minimal dilution to existing shareholders.
For the EPC supply chain, this milestone extends Bechtel’s LNG backlog deep into the next decade and reinforces its dominance in U.S. Gulf LNG construction.
Outlook
Train 5 construction will now advance under Bechtel’s execution plan, with mechanical completion targeted around 2030 and first LNG in early 2031. As NextDecade continues toward a potential Train 6 development, contractors, fabricators, and service providers across the Gulf Coast can expect a continued pipeline of tendering activity well into 2026.
