U.S. NextDecade Secures $1 Billion Loan for Rio Grande LNG Project

en.Wedoany.com Reported - NextDecade announced it has secured a $1 billion term loan to support its Rio Grande liquefied natural gas (LNG) project in Texas, USA. The company confirmed in a filing with the U.S. Securities and Exchange Commission (SEC) that its subsidiary, RGLNG HoldCo Borrower, has entered into a credit agreement with Wilmington Trust (as administrative agent and collateral agent) and a group of lenders.

RGLNG HoldCo Borrower is the direct parent company of Rio Grande LNG Holdings, which in turn is the direct parent company of Rio Grande LNG (RGLNG), responsible for operating the first three production trains of the Rio Grande LNG facility. RGLNG HoldCo Borrower is also an indirect wholly-owned subsidiary of NextDecade's indirect subsidiary, Rio Grande LNG Intermediate Holdings, a joint venture entity that indirectly holds equity in RGLNG.

NextDecade stated that the $1 billion term loan provided under the credit agreement matures on June 17, 2033. RGLNG HoldCo Borrower will primarily use the funds for equity contributions to RGLNG. RGLNG plans to use these contributions to reduce outstanding borrowings under its existing credit facilities, pay fees and expenses related to the credit agreement and RGLNG HoldCo loans, and cover general and administrative expenses of RGLNG HoldCo Borrower.

The Rio Grande LNG project has already made final investment decisions for five production trains. In July 2023, NextDecade made a final investment decision for the first three trains; in September and October of last year, the company made final investment decisions for the fourth and fifth trains. This brings the total expected LNG production capacity under construction at Rio Grande LNG to approximately 30 million tons per year.

NextDecade expects the facility to receive its first natural gas by the end of this year and begin shipping LNG from the first production train in the first half of 2027. Additionally, the company is seeking approval from the U.S. Federal Energy Regulatory Commission (FERC) to build and operate a sixth Rio Grande liquefaction train and an additional dock berth.

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