TotalEnergies reaches FID on Rio Grande LNG Train 4 with 10% stake and 1.5 Mtpa offtake
TotalEnergies has signed agreements with NextDecade to acquire a 10% stake in the joint venture developing Train 4 of the Rio Grande LNG (RGLNG) project in South Texas. Along with this direct stake, the company will also hold an additional 7% indirectly through its 17.1% shareholding in NextDecade.
Together with NextDecade (40%), Global Infrastructure Partners (36.9%), GIC (7.9%), and Mubadala (5.2%), TotalEnergies has made the Final Investment Decision (FID) to move forward with Train 4.
The new train will add around 6 million tons per annum (Mtpa) of LNG capacity, bringing Rio Grande LNG’s total capacity to about 24 Mtpa by 2030. The project will be financed with 40% equity and 60% debt.
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, said, “We are very pleased with the FID of RGLNG Train 4. This project, from which we will offtake 1.5 Mtpa, strengthens our LNG export capacity from the U.S. It gives us access to competitive LNG with low production costs and will raise our U.S. export capacity to over 16 Mtpa by 2030, supporting global gas supply and our 10% market share worldwide.”
Matt Schatzman, Chairman and CEO of NextDecade, added, “We are pleased to have TotalEnergies extend their commitment through Train 4. LNG exported by TotalEnergies from our project will provide affordable, reliable, and secure energy to customers worldwide.”
TotalEnergies had previously signed a 20-year Sales and Purchase Agreement (SPA) with NextDecade for 1.5 Mtpa from Train 4. The company also holds a 16.7% interest in Phase 1 of Rio Grande LNG, which covers three liquefaction trains under construction and set to begin operations in 2027. From Phase 1, TotalEnergies will offtake 5.4 Mtpa. In addition, it owns 17.1% of NextDecade, the project’s operator and shareholder.
