NextDecade greenlights Train 4 at Rio Grande LNG export project in Texas

Sept 9 (Reuters) - U.S. liquefied natural gas producer NextDecade NEXT.O said on Tuesday it has reached a positive final investment decision for the fourth liquefaction plant, known as a train, of its Rio Grande export project in Texas.

Shares of the company rose nearly 2% in extended trading as the announcement marks the fourth positive FID for an LNG development project in the U.S., the world's largest exporter of the superchilled fuel.

The LNG sector in the U.S. has seen a pick-up in commercial activity after President Donald Trump lifted a moratorium on new export permits soon after coming into office in January.

LNG developers typically reach an FID on projects once they have secured enough supply deals to obtain the necessary financing for construction.

Train 4 has an expected LNG production capacity of nearly 6 million tonnes per annum, bringing the total expected production capacity under construction at Rio Grande export facility to about 24 mtpa.

The company said Train 4 is commercially supported by 4.6 mtpa of 20-year agreements with Abu Dhabi National Oil Company (ADNOC), TotalEnergies TTEF.PA, and Saudi's Aramco 2223.SE.

The completion date for Train 4, as well as the first commercial delivery date under the Train 4 LNG deals, is anticipated in the second half of 2030, NextDecade said.

Total project costs associated with Train 4 and related infrastructure are expected to be about $6.7 billion, which is being financed using equity and loan commitments.

NextDecade has been signing multiple LNG deals from the Brownsville, Texas facility, which is under construction and has a potential capacity of about 48 million tonnes per annum, to strengthen its position in the international market.

Venture Global VG.N had greenlit its CP2 LNG project in July, while Cheniere LNG.N approved its midscale Trains 8 and 9 and Woodside Energy WDS.AX gave the go-ahead on its Louisiana project.

The LNG producer said on Monday it had fully commercialized Train 5, which is expected to announce a positive FID in the fourth quarter, with the signing of a 20-year supply agreement with ConocoPhillips.