NextDecade Funds $6.7B per Train 4 & 5 Projects, Seeks LNG Start in 1H 2027
NextDecade confirmed full funding at FIDs for Trains 4 and 5—60% debt ($3.8B and $3.6B) and 40% equity ($2.8B and $2.6B)—with no additional capital raises needed. It expects first LNG output from Train 1 in 1H 2027 and has 9.1 mtpa of SPAs yielding $1.2B in annual fees.
1. Full Funding for Trains 4 and 5
NextDecade reconfirmed that each Train 4 and 5 project carries an estimated cost of $6.7 billion and is fully funded at final investment decision, comprising approximately 60% debt ($3.8 billion for Train 4 and $3.6 billion for Train 5) and 40% equity commitments ($2.8 billion and $2.6 billion, respectively). No incremental capital raises are expected to support construction based on current financing sources.
2. Train 1 Construction Progress and Timeline
Structural steel and equipment installation on Train 1 is substantially complete, with early electrical commissioning, piping installation, cable pulling, and main compressor work underway. Marine loading and tug berths are advancing, and commissioning activities are slated for 2026, targeting first LNG production in the first half of 2027.
3. Long-Term SPAs and Early Cargo Strategy
The company has secured 9.1 mtpa of 20-year SPAs, generating approximately $1.2 billion in fixed annual liquefaction fees, including agreements with TotalEnergies, Aramco, JERA, EQT, ConocoPhillips and ADNOC. NextDecade began marketing early cargoes in 2026 and sold over 175 TBtu YTD at expected margins above $3 per MMBtu, reducing uncontracted Phase 1 volumes by about one-third.
4. Financial Targets and Outlook
NextDecade targets a corporate debt to adjusted EBITDA ratio of 3.0x–3.5x after final commercial deliveries for Train 5. Management projects early-volume cash flows could yield $2 billion of distributable cash at a $5/MMBtu margin (or $1.2 billion at $3), and retains optionality to contract an additional 2 mtpa under long-term SPAs.