Houston-based NextDecade announced that Reston, Virginia-based Bechtel finalized $9 billion in contracts for construction work on Train 4 and Train 5 at its Rio Grande LNG Facility in Brownsville, Texas.
NextDecade, the oil and gas firm that owns the facility, said "that its subsidiaries have finalized a pricing refresh of the Company's lump-sum, turnkey engineering, procurement and construction (EPC) contract with Bechtel Energy Inc. (Bechtel) for the construction of Train 4 and related infrastructure at the Rio Grande LNG Facility and executed a lump-sum, turnkey EPC contract with Bechtel for the construction of Train 5 and related infrastructure at the Rio Grande LNG Facility."
An LNG train refers to the liquefaction unit within an LNG plant.
NextDecade will pay Bechtel approximately $4.77 billion for the Train 4 work and $4.32 billion for the Train 5 work, according to the news release.
Both contracts include pricing validity clauses that extend to Sept. 15, 2025.
Bechtel and NextDecade already have a working relationship: The former is building Phase 1 of the Rio Grande LNG Plant for $12 billion, which includes the facility's first three liquefaction trains.
In NextDecade's first-quarter business update in May, the company reported that the overall project completion percentage for the first two trains and the common facilities of the Rio Grande LNG Facility was 42.8 percent as of March, while the third train was 17.8 percent complete.
In May, NextDecade signed a 20-year deal to supply Japan's power generator JERA with 2 million tons annually of LNG from the fifth liquefaction facility at its Rio Grande project, according to Reuters.
