Bechtel Awarded $9 Billion EPC Contrat : NextDecade Corporation has finalized major EPC agreements with Bechtel Energy Inc. for the construction of Trains 4 and 5 at its Rio Grande LNG Facility in Texas, marking a significant step forward in the company’s expansion plans.
Table of Contents
Key Highlights of Bechtel Awarded $9 Billion EPC Contracts:
- Train 4 EPC Contract Value: ~$4.77 billion
- Train 5 EPC Contract Value: ~$4.32 billion
- Owner’s Costs (each train): Estimated at $1.8–$2.0 billion
- EPC Contractor: Bechtel Energy Inc.
- Pricing Validity: Through September 15, 2025
- Final Investment Decision (FID): Targeted before pricing validity ends for both trains
The EPC contract for Train 4 is valued at approximately $4.77 billion, while Train 5 is priced at around $4.32 billion. Both contracts are lump-sum, turnkey agreements, ensuring cost and timeline predictability. The pricing for both contracts remains valid until September 15, 2025.
In addition to EPC costs, NextDecade expects owner’s costs, financing fees, contingencies, and interest during construction for each train to range between $1.8 to $2.0 billion.
NextDecade has already completed commercialization for Train 4 and started the financing process. The company is targeting a positive Final Investment Decision (FID) for Train 4 before the pricing validity expires.
For Train 5, a 20-year LNG Sale and Purchase Agreement (SPA) with JERA has been secured for 2 MTPA, and the company is working to commercialize another 2.5 MTPA to support the FID. Financing efforts for Train 5 are also underway.
The successful execution of these EPC contracts brings NextDecade closer to expanding its Rio Grande LNG export capacity, supporting global energy demand with long-term LNG supply commitments.
Source:
Also Read: Petrofac Wins $1.2 Billion EPCM Contract from ADNOC Gas