News
July 1, 2025

Bechtel Secures $9B for Next Phase of Rio Grande LNG Facility

Caroline Raffetto

Bechtel has landed an additional $9 billion in construction contracts at the Rio Grande LNG project in Brownsville, Texas, deepening its role in one of the most significant liquefied natural gas developments in the United States.

The Reston, Virginia-based engineering and construction giant has been selected to build Trains 4 and 5, along with related infrastructure at the Rio Grande LNG Facility, according to a statement released by Houston-based energy firm NextDecade.

Bechtel is already managing the $12 billion Phase 1 construction of the facility, which includes the first three liquefaction trains. The new contracts significantly expand Bechtel’s involvement in the project and affirm the momentum behind LNG infrastructure development on the Gulf Coast.

Contract Terms and Details

NextDecade confirmed that it had finalized a revised pricing agreement with Bechtel for Train 4 under a lump-sum, turnkey engineering, procurement and construction (EPC) contract. A separate EPC contract was also executed for Train 5.

“The company will pay Bechtel approximately $4.77 billion for the EPC contract for Train 4,” the release stated, “and $4.32 billion for the work on Train 5.”

Both contracts include pricing validity clauses that extend through September 15, meaning Bechtel has committed to keeping its current pricing in place until that date.

Zacks Equity Research, a Chicago-based investment research firm, said this clause “implies Bechtel won’t increase the costs associated with these two trains prior to the listed date.”

Environmental Review and Legal Hurdles

The expansion comes after a period of regulatory uncertainty. In 2024, the U.S. Court of Appeals vacated the Federal Energy Regulatory Commission’s (FERC) authorization for Train 4, citing a lack of a supplemental environmental impact statement (SEIS).

However, in a significant reversal in March, the court overturned its earlier decision, clearing the way for continued development. Law firm Orrick, Herrington & Sutcliffe, which represented NextDecade in the case, confirmed that the ruling permits the company to move forward with the project.

FERC issued a draft SEIS for the first five trains in March and is expected to issue the final SEIS in July. A corporate update from May indicated that NextDecade anticipates reauthorization by FERC by November.

Project Progress and Outlook

As of March, the overall completion for Trains 1 and 2 and shared infrastructure stood at 42.8%, according to NextDecade’s first-quarter business update. Train 3 was 17.8% complete, and the progress metrics remain consistent with the original EPC timeline.

The Rio Grande LNG project is expected to play a critical role in positioning the U.S. as a global LNG supplier. With demand for LNG continuing to rise—especially in Europe and Asia—projects like this are drawing increased attention from investors, regulators, and the construction industry alike.

Bechtel’s continued involvement further reinforces its status as a dominant player in the global energy infrastructure space. The firm has decades of experience delivering large-scale, complex industrial projects across the globe, including major LNG terminals in Australia, Africa, and North America.

Originally reported by Matthew Thibault in Construction Dive.

News
July 1, 2025

Bechtel Secures $9B for Next Phase of Rio Grande LNG Facility

Caroline Raffetto
Construction Industry
Virginia

Bechtel has landed an additional $9 billion in construction contracts at the Rio Grande LNG project in Brownsville, Texas, deepening its role in one of the most significant liquefied natural gas developments in the United States.

The Reston, Virginia-based engineering and construction giant has been selected to build Trains 4 and 5, along with related infrastructure at the Rio Grande LNG Facility, according to a statement released by Houston-based energy firm NextDecade.

Bechtel is already managing the $12 billion Phase 1 construction of the facility, which includes the first three liquefaction trains. The new contracts significantly expand Bechtel’s involvement in the project and affirm the momentum behind LNG infrastructure development on the Gulf Coast.

Contract Terms and Details

NextDecade confirmed that it had finalized a revised pricing agreement with Bechtel for Train 4 under a lump-sum, turnkey engineering, procurement and construction (EPC) contract. A separate EPC contract was also executed for Train 5.

“The company will pay Bechtel approximately $4.77 billion for the EPC contract for Train 4,” the release stated, “and $4.32 billion for the work on Train 5.”

Both contracts include pricing validity clauses that extend through September 15, meaning Bechtel has committed to keeping its current pricing in place until that date.

Zacks Equity Research, a Chicago-based investment research firm, said this clause “implies Bechtel won’t increase the costs associated with these two trains prior to the listed date.”

Environmental Review and Legal Hurdles

The expansion comes after a period of regulatory uncertainty. In 2024, the U.S. Court of Appeals vacated the Federal Energy Regulatory Commission’s (FERC) authorization for Train 4, citing a lack of a supplemental environmental impact statement (SEIS).

However, in a significant reversal in March, the court overturned its earlier decision, clearing the way for continued development. Law firm Orrick, Herrington & Sutcliffe, which represented NextDecade in the case, confirmed that the ruling permits the company to move forward with the project.

FERC issued a draft SEIS for the first five trains in March and is expected to issue the final SEIS in July. A corporate update from May indicated that NextDecade anticipates reauthorization by FERC by November.

Project Progress and Outlook

As of March, the overall completion for Trains 1 and 2 and shared infrastructure stood at 42.8%, according to NextDecade’s first-quarter business update. Train 3 was 17.8% complete, and the progress metrics remain consistent with the original EPC timeline.

The Rio Grande LNG project is expected to play a critical role in positioning the U.S. as a global LNG supplier. With demand for LNG continuing to rise—especially in Europe and Asia—projects like this are drawing increased attention from investors, regulators, and the construction industry alike.

Bechtel’s continued involvement further reinforces its status as a dominant player in the global energy infrastructure space. The firm has decades of experience delivering large-scale, complex industrial projects across the globe, including major LNG terminals in Australia, Africa, and North America.

Originally reported by Matthew Thibault in Construction Dive.