Rio Grande LNG Super Holdings Secures Credit Agreement for LNG Export Terminal Expansion

Rio Grande LNG Super Holdings, a subsidiary of NextDecade Corporation, has recently entered into a credit agreement with General Atlantic Credit’s Atlantic Park Fund. The funds from this agreement will be used to finance the expansion of two trains at the liquefied natural gas (LNG) export terminal currently under construction at the Port of Brownsville, Texas.

Utilization of Funds

NextDecade plans to utilize the proceeds from the credit agreement to repay existing borrowings under a revolving credit facility and an interest-term loan with MUFG Bank. Additionally, the funds will also support working capital needs and general corporate purposes, including development expenses for the expansion of trains 4 and 5 at the Rio Grande LNG facility.

Project Development

The Rio Grande LNG export facility, with a capacity of 27 million tonnes per annum (mtpa), is one of the key projects being developed by NextDecade. The company is also working on a significant carbon capture and storage (CCS) project at the site, aiming to make it one of the largest in North America.

Recent Developments

In August 2024, NextDecade withdrew its application to the Federal Energy Regulatory Commission (FERC) for the proposed CCS project at the Rio Grande LNG facility. The decision was made as the CCS project was not yet sufficiently developed for FERC review to proceed.

The final investment decision (FID) for Phase 1 of the project, which includes the construction of three trains, storage tanks, and jetty berthing structures, was reached in July 2023. Construction work commenced shortly after, but legal challenges have delayed the FID for Train 4, originally planned for the second half of 2024.

Future Plans

Once the FID is secured for Train 4, NextDecade intends to initiate the engineering, procurement, and construction (EPC) contracting process for Train 5. The company has already signed a multibillion-dollar EPC contract with Bechtel for Train 4 and secured offtake agreements with Aramco and ADNOC.

Overall, the expansion of the Rio Grande LNG facility represents a significant investment in the future of LNG exports from the United States, further solidifying NextDecade’s position in the energy market.