United States: TotalEnergies reaches Final Investment Decision with its Partners on Rio Grande LNG Train 4, with a 10% Direct Participating Interest and 1.5 MT LNG offtake

TotalEnergies has entered into agreements with NextDecade to acquire a 10% direct stake in the joint venture developing Train 4 of the Rio Grande LNG (RGLNG) project in South Texas. In addition to this, the company will also indirectly hold nearly 7% through its 17.1% ownership in NextDecade.

Alongside this, TotalEnergies, NextDecade (40%), Global Infrastructure Partners (36.9%), GIC (7.9%), and Mubadala (5.2%) have reached a Final Investment Decision (FID) to proceed with Train 4.

The fourth liquefaction train will add around 6 million tons per annum (Mtpa) of capacity, raising RGLNG’s total output to about 24 Mtpa once operational in 2030. The project will be financed with roughly 40% equity and 60% debt.

“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 United States,” said Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies. “It provides access to competitive LNG with low production costs. Once online, the LNG from Train 4 will lift our U.S. LNG export capacity to over 16 Mtpa by 2030, reinforcing our role in global gas supply and sustaining our 10% worldwide market share.”

Matt Schatzman, Chairman and CEO of NextDecade, added: “We are delighted to see TotalEnergies, our largest LNG customer and equity partner in Phase 1 of Rio Grande LNG, extend their support into Train 4. LNG exported by TotalEnergies from this project will deliver affordable, reliable, and secure energy to customers globally.”

TotalEnergies has already signed a 20-year Sales and Purchase Agreement (SPA) with NextDecade to offtake 1.5 Mtpa from Train 4. The company also holds a 16.7% stake in Phase 1 of Rio Grande LNG, from which it will offtake 5.4 Mtpa. Phase 1, consisting of three liquefaction trains currently under construction in South Texas, is scheduled to begin operations in 2027. Additionally, TotalEnergies maintains a 17.1% ownership in NextDecade, the operator and shareholder of Rio Grande LNG.