NEXT

NextDecade($NEXT) Forms Strategic Partnership as Hanwha Aerospace Buys 2.5M Shares...LNG Project Gains Momentum

11/20/2025 00:20

NextDecade ($NEXT) is clearly demonstrating why it deserves attention in the LNG market. This Texas-based LNG export terminal developer, despite being a small-cap company with a market capitalization of $1.59 billion, shows strong insider confidence in its future growth potential based on recent trading patterns. NextDecade is developing the Rio Grande LNG project in Texas with a total capacity of 17.6 MTPA (million tonnes per annum). The company's core business involves operating LNG terminals that liquefy natural gas for export, positioning it to directly benefit from U.S. LNG export expansion and global energy transition. Notably, it has secured 20-year long-term supply contracts with global energy companies including Saudi Aramco, TotalEnergies, and JERA, establishing a solid business foundation. The most striking aspect is the recent insider trading pattern. On September 12, CEO Matthew Schatzman purchased 281,500 shares at $7.14 per share, investing over $2 million. This purchase is particularly significant as it occurred when the stock was substantially down from its highs. Almost simultaneously, Director William Vrattos bought 600,000 shares, and Bardin Hill Investment Partners purchased over 350,000 shares. However, the real game-changer is Hanwha Aerospace's moves. Since November, Hanwha Aerospace has been continuously accumulating NextDecade shares. From November 11 to 19, it purchased approximately 2.5 million shares, investing over $14 million. This goes beyond simple investment and suggests strategic partnership building. It signals Hanwha Group's serious entry into the U.S. LNG market as part of its energy infrastructure business expansion. From a stock price perspective, NextDecade has exhibited extreme volatility. In August 2024, when a court overturned the Rio Grande LNG project approval, shares plummeted from $8 to below $5. Later, in July 2025, when FERC (Federal Energy Regulatory Commission) recommended final environmental approval, shares surged to $12, but currently trade in the $6-7 range again. Assessing the current situation, NextDecade presents both clear opportunities and risks. With Final Investment Decisions (FID) for Train 4 and Train 5 approved in September, the project has entered the execution phase. Securing $1.8 billion in funding commitments from TotalEnergies and Global Infrastructure Partners is also positive. However, rising construction costs and concerns about LNG market oversupply remain burdensome factors. From an investor perspective, the timing of insider purchases is noteworthy. The CEO and major shareholders investing large amounts during a stock decline suggests they view current valuations as attractive. Particularly, Hanwha Aerospace's consecutive purchases appear to be strategic investments considering business synergies rather than purely financial investments. LNG market prospects are also positive. The U.S. is expected to triple its LNG export capacity by 2030, and NextDecade's Rio Grande project is a core asset to benefit from this growth. With first production expected in 2027, construction progress over the next two years will critically impact share price. For risk management, regulatory changes and rising construction costs must be monitored. Natural gas price volatility and potential LNG market oversupply are also variables. However, considering revenue stability through long-term supply contracts and strong insider confidence, investment attractiveness appears considerable at current price levels.