NextDecade Corporation (NEXT) saw its stock plummet by 5% during intraday trading on Thursday, following reports that TotalEnergies has decided not to invest in the company's fifth LNG export unit in Texas. This development marks a significant setback for NextDecade's expansion plans in the liquefied natural gas (LNG) sector.

According to sources familiar with the matter, TotalEnergies is shifting its focus to lower-cost LNG projects in other countries as part of a reassessment of its global strategy. This move reflects a broader trend in the energy industry, with TotalEnergies prioritizing the restart of its $20 billion LNG project in Mozambique and expanding operations in Canada and Qatar.

Despite this setback, NextDecade remains committed to its growth plans. The company is still aiming to make a final investment decision on Train 5 by mid-September and is actively working to secure deals for 2.5 million tons of LNG annually. However, NextDecade faces additional challenges, including higher construction costs due to US steel tariffs, intense competition from rivals like Venture Global, and projections of a global LNG surplus after 2027.