TotalEnergies buys shares in USA's Rio Grande LNG

TotalEnergies buys shares in USA’s Rio Grande LNG

USA

BROWNSVILLE, June 15, 2023 – TotalEnergies has signed a framework agreement with US LNG developer NextDecade to acquire a 17.5% stake in their operations for USD 219 million, the French energy giant announced on Wednesday.

The shares will allow the buyer to participate in NextDecade’s Rio Grande LNG project located in Texas, USA, which consists of three trains with a total capacity of 17.5 million tonnes per year.

Under the deal, TotalEnergies will hold a 16.7% stake in the first phase of the development and offtake 5.4 million tonnes per year of LNG from the project.

The deal includes the option to offtake LNG from the second phase of the project.

 

NextDecade operates the project alongside majority stakeholder Global Infrastructure Partners.

The Rio Grande project is expected to complete its FID in the next few weeks, with startup planned in 2027.

The project plans to reduce its carbon emissions by 90% through a carbon capture and storage platform.

It is the largest privately funded infrastructure project in Texas and will be located in Brownsville.

TotalEnergies is the world’s third largest LNG player, with around 12% of the global market share.