NextDecade May 2025 slides: Rio Grande LNG construction on track, expansion accelerating

Introduction & Market Context

NextDecade Corporation (NASDAQ:NEXT) recently shared its May 2025 corporate presentation, highlighting the progress of its Rio Grande LNG facility construction and ambitious expansion plans. The company’s stock has shown positive momentum, trading at $9.14 in after-hours, up 2.24% from its last close of $8.94, and approaching its 52-week high of $9.71.

The presentation comes amid growing global demand for natural gas and increasing recognition of LNG’s role in the energy transition, positioning NextDecade to capitalize on favorable market conditions with its strategically located Texas facility.

Executive Summary

NextDecade’s Rio Grande LNG project is progressing on schedule and on budget, with Trains 1-3 (Phase 1) under construction and Trains 4-8 in various stages of development and commercialization. The company has secured long-term sales and purchase agreements (SPAs) with major global energy companies, including ADNOC, Aramco (TADAWUL:2222), and TotalEnergies (EPA:TTEF), demonstrating strong commercial momentum.

The presentation emphasized NextDecade’s competitive advantages, including its strategic site location in south Texas with access to abundant gas supplies, established partnerships with high-quality counterparties, and a phased development approach that allows for efficient capital deployment.

Project Development Progress

Construction of Phase 1 (Trains 1-3) is advancing steadily, with Trains 1 and 2 at 42.8% completion and Train 3 at 17.8% completion as of March 2025. The company reported significant progress in steel assembly, above-ground piping, and equipment installation in Train 1, while foundation pours and steel assembly continue in Train 2, and first steel has been placed for Train 3.

As shown in the following chart of completion percentages for Phase 1:

The aerial views of the construction site demonstrate the scale and progress of the project:

NextDecade’s site plan for Phase 1 showcases the comprehensive layout of the facility, including three liquefaction trains, two 180,000m³ LNG storage tanks, marine facilities, and supporting infrastructure on a 984-acre site with 15,000 feet of frontage on the Brownsville Ship Channel:

Recent aerial photography from March 2025 provides further evidence of construction progress:

Commercial & Strategic Partnerships

NextDecade has successfully commercialized Train 4 with 20-year SPAs totaling 4.6 MTPA with ADNOC (1.9 MTPA), Aramco (1.2 MTPA), and TotalEnergies (1.5 MTPA). The company has finalized an EPC contract with Bechtel for Train 4, with a pricing refresh expected to be completed in Q2 2025, followed by the launch of the financing process.

Train 5 is in the commercialization phase, with TotalEnergies holding an LNG purchase option for 1.5 MTPA. The company is also beginning the development and permitting process for Trains 6-8, with Train 6 pre-filing with FERC expected in 2025 and full application filing in early 2026.

The company’s valuable relationships with high-quality counterparties across the value chain are illustrated in this partnership overview:

NextDecade’s partnership with Bechtel, a preeminent global LNG EPC contractor, provides significant de-risking for the project through fully-wrapped, lump-sum, turnkey EPC contracts. The Rio Grande LNG facility utilizes the proven APCI 3MR LNG process, the world’s most prevalent liquefaction technology.

LNG Market Fundamentals

NextDecade’s expansion plans are supported by strong LNG market fundamentals. Global natural gas demand has increased by approximately 700 Bcm over the past 10 years at a 1.8% CAGR, with a 2.5% increase in 2024 despite limited new LNG supplies.

The presentation included this chart showing the growing global demand for natural gas:

Significant incremental LNG capacity will be needed to facilitate future gas demand growth, as illustrated in this projection:

The company highlighted that existing global regasification capacity can accommodate substantial LNG supply growth, with 45 countries having operational regasification infrastructure and 7 more with facilities under construction:

NextDecade also noted that underinvestment in clean energy could create additional LNG demand, as natural gas production, particularly in the U.S., can be scaled more quickly and economically than many global clean energy sources:

Regulatory & Community Engagement

On the regulatory front, NextDecade reported that the Federal Energy Regulatory Commission (FERC) issued a draft supplemental environmental impact statement (SEIS) for the first five trains at the Rio Grande LNG facility in March 2025. The public comment period for the SEIS ends in May 2025, with the final SEIS expected in July 2025 and a final FERC order anticipated by November 2025.

The company emphasized its commitment to the Rio Grande Valley community through continuous engagement with local stakeholders, sponsorship of community events, and the establishment of a Community Advisory Board with over 30 members representing diverse local interests. NextDecade’s community engagement is founded on four core values: fostering local economic prosperity, cultivating inclusivity, nurturing leadership, and promoting sustainability.

Forward-Looking Statements

Looking ahead, NextDecade aims to make a final investment decision (FID) on Train 4 following the completion of the EPC pricing refresh and financing process in 2025. The company is targeting Train 5 EPC contract finalization in 2025 while continuing commercial discussions with multiple counterparties.

For Trains 6-8, NextDecade plans to begin the permitting process with FERC pre-filing for Train 6 in 2025 and full application filing in early 2026. The company noted that its 984-acre site has sufficient space to develop up to 10 total liquefaction trains, potentially making the Rio Grande LNG facility one of the largest LNG production and export facilities in the world.

NextDecade’s phased development approach allows for efficient capital deployment while maintaining flexibility to respond to market conditions, positioning the company to capitalize on the growing global demand for LNG as a transition fuel in the evolving energy landscape.

Full presentation:

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