Earnings

NextDecade Tightens Train 1 Start-Up Window

The Tip Desk · November 1, 2026 · 3 min read

The Houston-based LNG developer now expects first Train 1 output in the second quarter of 2027 and substantial completion in the third quarter, a quarter ahead of the Bechtel EPC guarantee.

NextDecade Corporation (NEXT) said it now expects first LNG production from Train 1 at the Rio Grande LNG Facility in the second quarter of 2027, a tighter window than the first-half 2027 outlook it gave two quarters earlier, and substantial completion of Train 1 in the third quarter of 2027, a quarter ahead of the guaranteed completion schedule under the EPC contract with Bechtel Energy, Inc.

The Houston-based energy company, which is constructing a multi-train liquefaction plant in the Rio Grande Valley near Brownsville, Texas, also said it continues to expect first gas into the facility before year-end 2026, versus a second-half 2026 expectation stated in the prior two quarters.

Construction on Phase 1, which includes Trains 1 through 3, remained ahead of the guaranteed EPC schedule. Overall completion of Trains 1 and 2 rose to 79.7% as of September 2026 from 74.0% as of June 2026, with commissioning at 4.9% versus 0.6%. Train 3 overall completion rose to 55.2% from 50.4%, with construction at 24.5% versus 17.4%. Train 4 overall completion rose to 22.5% from 15.5%, and Train 5 to 14.0% from 9.4%; both later trains remained in line with their guaranteed schedules.

During the third quarter, Train 1 electrical, mechanical, and utility commissioning scopes progressed and installation of the Train 2 main cryogenic heat exchanger was completed. Dredging for the berths, turning basin, and channel deepening was completed. Gas inlet facilities achieved ready for start-up, and the Bay Runner pipeline reached in-service. The company said it is continuing commissioning of systems to support initial hydrocarbon introduction before year-end 2026.

In September 2026, the Federal Energy Regulatory Commission approved an uprate that increased authorized liquefaction capacity of the first five trains to 30.15 million tonnes per annum, versus the approximately 30 MTPA combined expected capacity previously described. Long-term sale and purchase agreements with 14 counterparties cover about 25.3 MTPA from Trains 1 through 5 on a weighted average term of 19.5 years; about 23.75 MTPA are linked to Henry Hub with average fixed fees, unadjusted for inflation, totaling about $3.0 billion expected annually.

Expansion work advanced on Train 6. The company received U.S. Army Corps of Engineers permit authorization in September 2026, completing a key regulatory authorization required for construction. FERC’s final Environmental Impact Statement for Train 6 is expected in June 2027. Commercialization of Train 6 is underway. Trains 7 and 8 are expected to be pre-filed with FERC before year-end 2026. Trains 6 through 8 are wholly owned and are cumulatively expected to add 18 MTPA once built.

Financing at the project entities continued. Phase 1 LLC issued $575.0 million of senior secured notes in a September 2026 private placement at 6.72%, amortizing over about 18.5 years beginning June 2029 with final maturity in December 2047, to reduce credit-facility borrowings. In October 2026, Rio Grande LNG Train 5, LLC issued the final $150.0 million installment of 6.56% Senior Secured Notes due 2050, completing the $500.0 million program that had $350 million outstanding as of July 29, 2026.

Total expected capital costs remain about $18.0 billion for Phase 1 and about $6.7 billion each for Trains 4 and 5. The company said it is focused on constructing the facility safely, on schedule, and on budget.