Bechtel has received the go-ahead to begin construction on the long-delayed $6.7 billion Train 4 expansion of the Rio Grande LNG facility in Brownsville, Texas, marking a major milestone for both the contractor and project owner NextDecade.
The project, which had been stalled after the U.S. Court of Appeals for the District of Columbia Circuit revoked the Federal Energy Regulatory Commission’s (FERC) authorization in 2024, was revived earlier this year when the court reversed its ruling. That decision paved the way for NextDecade to reach financial close and issue a full notice to proceed to Reston, Virginia-based Bechtel, the contractor it tapped for the job.
According to NextDecade’s Sept. 9 news release, the company finalized its positive final investment decision (FID) on Train 4, securing full funding for the new liquefaction train and associated infrastructure. Bechtel’s portion of the Train 4 work is valued at $4.77 billion, while the overall project cost totals $6.7 billion.
The new Train 4 will add about 6 million tons per annum (MTPA) of liquefied natural gas production capacity, bringing the Rio Grande LNG facility’s total capacity under construction to 24 MTPA.
But Bechtel’s role extends well beyond Train 4. The builder also holds a $4.32 billion contract for Train 5, which has already completed its commercialization phase and is expected to receive a positive FID before the end of 2025. Together, Trains 4 and 5 represent nearly $9 billion in construction work for Bechtel.
In addition, Bechtel is currently executing Phase 1 of the Rio Grande LNG complex, a $12 billion scope that includes the first three trains of the facility.
Industry Context
“The global call for additional natural gas infrastructure continues to be strong, and we are well positioned to meet this growing demand for cleaner energy, with approximately 24 million tonnes per annum (MTPA) of expected LNG production capacity currently under construction, Train 5 nearing a positive FID, and significant additional expansion capacity under development at the Rio Grande LNG site,” said Matt Schatzman, NextDecade’s CEO, in the release.
The timing also reflects a favorable policy environment. Under the Trump administration, federal agencies have taken steps to streamline permitting for major infrastructure projects. Recent changes to the National Environmental Policy Act (NEPA) and executive orders promoting digital permitting are designed to accelerate approvals for large-scale energy developments such as Rio Grande LNG.
NextDecade projects that Train 4 will reach substantial completion in the second half of 2030, with Train 5 slated to finish in the first half of 2031.
Once completed, the Rio Grande LNG project is expected to become one of the largest U.S. LNG export facilities, strengthening America’s role in the global energy market and positioning Brownsville as a critical hub in the Gulf Coast energy corridor.
Originally reported by Matthew Thibault in Construction Dive.
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