NextDecade Stock Gains After LNG Firm Finalizes Contracts With Bechtel For Rio Grande Expansion

The combined two liquefaction trains will boost the LNG export project’s capacity by 9 million tonnes per annum (MTPA).

NextDecade (NEXT) stock rose 4.3% in premarket trading on Friday after the company finalized contracts with engineering firm Bechtel to build two additional liquefaction trains at its Rio Grande LNG facility.

The company stated that it has agreed to pay Bechtel approximately $4.77 billion for the work under the engineering, procurement, and construction (EPC) contract for Train 4.

It will also pay Bechtel about $4.32 billion for the work under the EPC contract for Train 5.

The combined two liquefaction trains will boost the LNG export project’s capacity by 9 million tonnes per annum (MTPA).

Both contracts have pricing validity until Sept. 15. The company expects to achieve a favorable final investment decision on Train 4 before the end of the pricing validity period, as it has completed the commercialization process for Train 4 and initiated the financing process for the liquefaction project and related infrastructure.

In May, the company announced a 20-year, 2 million metric tons per annum (MTPA) LNG Sale and Purchase Agreement (SPA) with Japanese power company JERA for Train 5.

It is also working on commercializing an additional 2.5 MTPA under long-term LNG SPAs to support a positive FID on Train 5.

Retail sentiment on Stocktwits was ‘bearish’ (43/100) territory, while retail chatter was ‘normal.’

NextDecade stock has risen 8% this year.

U.S. LNG firms have benefited from the favorable policies of the Trump administration as well as growing demand from Asian and European countries, which are looking to reduce their trade surplus with the U.S.

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