NextDecade Stock Rises After US Court Allows Rio Grande LNG Construction To Proceed, Retail’s Rejuvenated

NextDecade (NEXT) stock jumped 17% on Tuesday after the company said that a U.S. court had revised its August 2024 order and allowed the construction of its Rio Grande liquefied natural gas (LNG) facility to proceed.

Last year, the court ruled to reverse the Federal Energy Regulatory Commission's approval for the first five trains of the Rio Grande project, which would convert natural gas to LNG. The court asked the energy regulator to reevaluate the project's environmental impact.

The company said that the U.S. Court of Appeals for the D.C. Circuit partially revoked its order against the FERC approval. However, it left the authorization process for the first five liquefaction trains to the federal regulator for further review.

“We are pleased with today’s revised Court judgment, which ensures construction at the Rio Grande LNG Facility will not be impacted by the Court,” CEO Matt Schatzman said.

The project, which lies on the north shore of the Brownsville Ship Channel in Texas, has already faced multiple delays.

In February, the TotalEnergies-backed company revealed plans to boost LNG production capacity at Rio Grande by adding three more trains.

Barring any new developments, NextDecade has the regulatory approvals and authorizations required to export up to 27 million tonnes per annum of LNG from the five trains at the Rio Grande.

Retail sentiment on Stocktwits jumped to ‘bullish’ (71/100) territory from ‘bearish’(28/100) a day ago, while retail chatter was ‘high.’

One user said that the investment in the stock “has come back to life.”

Another user said the FERC would reissue the permit and “everything will be ok.”

NextDecade shares have gained 56.5% year-to-date (YTD).

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