NextDecade's LNG Project Funding Disappoints Investors, but Positive Final Investment Decision on $18B Texas LNG Plant Moves Forward

Shares of NextDecade Corp fell 23% as investors expressed concerns over the terms of the $18.4 billion financing obtained for the Phase 1 of the Rio Grande LNG export facility. Analysts noted that the company may have given up more equity than expected to its financial partners, resulting in a larger portion of cash flow going to the new project level investors. The lump-sum turnkey engineering, procurement, and construction contracts were also lower than anticipated. NextDecade is expected to produce 27 million tonnes of LNG annually from the facility.