NextDecade inks TotalEnergies LNG deal, eyes Rio Grande FID

HOUSTON, April 15, 2025 – TotalEnergies has exercised an LNG purchase option it held for Train 4 at the Rio Grande LNG facility and executed a long-term LNG sale and purchase agreement with NextDecade for 1.5 million tonnes per year (tpy), NextDecade announced on Monday.

Under the terms of the deal, TotalEnergies will buy 1.5 million tpy for a period of 20 years on a free-on-board basis from Rio Grande LNG’s Train 4, subject to NextDecade’s positive FID on the project. The price of the LNG will be indexed to Henry Hub.

NextDecade has signed long-term offtake agreements from Train 4 for a total of 4.6 million tpy, most recently with Saudi Aramco for 1.2 million tpy. The company noted that it expects the commercial agreements signed to date will be sufficient to support a FID on the project.

“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 the execution of this Train 4 sale and purchase agreement. This 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,” said Matt Schatzman, chairman and CEO of NextDecade.

TotalEnergies joined Rio Grande LNG in 2023 when it acquired a 16.67% interest in the project’s first phase, which consisted of three liquefaction trains, and signed an initial offtake agreement for 5.4 million tpy. The company also acquired a 17.5% stake in NextDecade and a right to participate in subsequent phases of the project.

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