TotalEnergies has entered into a Sales and Purchase Agreement (SPA) with NextDecade for the purchase of 1.5 million tons per annum (Mtpa) of liquefied natural gas (LNG) from the future Train 4 of the Rio Grande LNG facility.
The 20-year agreement is contingent upon NextDecade reaching a positive Final Investment Decision (FID) for Train 4.
Gregory Joffroy, Senior Vice President LNG at TotalEnergies, stated, "We are pleased to sign with NextDecade a new 1,5 Mtpa SPA from the future Train 4 of Rio Grande. This agreement will enable NextDecade to progress towards the FID of the project and notably to start its financing process. Once effective, the agreement will help strengthen TotalEnergies' position to serve its customers with a competitive supply, as the leading exporter of LNG from the United States.”
Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer, commented, “TotalEnergies has been a key contributor to the success of Rio Grande LNG Phase 1, and we are pleased to be expanding our strategic partnership with TotalEnergies with the execution of this Train 4 SPA. This SPA completes the commercial support we need for Rio Grande LNG Train 4, and we are now focused on progressing Train 4 toward a positive FID.”
TotalEnergies currently holds a 16.7% stake in the first phase of the Rio Grande LNG facility, which includes three LNG trains under construction in southern Texas.
The company has previously agreed to purchase 5.4 Mtpa of the approximately 17.5 Mtpa expected from the first phase, with operations anticipated to begin in 2027.
Additionally, TotalEnergies holds a 17.5% stake in NextDecade, the shareholder and operator of the Rio Grande facility.
TotalEnergies is a global integrated energy company involved in the production and marketing of various energy sources, including oil and biofuels, natural gas, biogas, low-carbon hydrogen, renewables, and electricity. With over 100,000 employees, the company operates in approximately 120 countries. TotalEnergies is the world's third-largest LNG player, with a global portfolio of 40 Mt/y in 2024. TotalEnergies holds a 16.7% stake in the first phase of the Rio Grande LNG facility and has agreed to purchase 5.4 Mtpa of its production. The company also holds a 17.5% stake in NextDecade.
NextDecade is a company focused on the development of LNG projects. It is the shareholder and operator of the Rio Grande LNG facility located in southern Texas. The first phase of the facility includes three LNG trains currently under construction, with an expected production of approximately 17.5 Mtpa and a startup anticipated in 2027.