NextDecade sets September for final investment decision on Rio Grande LNG Train 5

Aug 1 (Reuters) - U.S. liquefied natural gas developer NextDecade Corp NEXT.O said on Friday it was targeting mid-September for a final investment decision on Train 5 of its Rio Grande LNG project in Texas.

The move follows its first long-term offtake deal for the fifth train and the execution of an engineering, procurement and construction contract.

NextDecade said it was working to contract an additional 2.5 million tonnes per annum under LNG supply deals to support Train 5.

LNG developers typically reach a final investment decision on projects once they have secured enough supply deals to obtain the necessary financing for construction.

NextDecade is also aiming final investment decision for Train 4 in the same timeframe, having secured 20-year LNG supply deals with Aramco 2223.SE, TotalEnergies TTEF.PA and ADNOC.

"Phase 1 remains on schedule and on budget, and we are progressing Trains 4 and 5 quickly toward final investment decisions," NextDecade CEO Matt Schatzman said in a statement.

As of June, Trains 1 and 2 and common facilities of the Rio Grande LNG facility were 48.3% complete, while Train 3 stood at 22.7%, the company said.