- TotalEnergies signs with NextDecade to purchase 1.5 Mtpa of LNG for 20 years from the future Train 4 at the Rio Grande LNG facility
- The SPA is subject to a positive FID for Train 4
TotalEnergies has signed a Sales and Purchase Agreement (SPA) with NextDecade to buy 1.5 million tons per annum (Mtpa) of liquefied natural gas (LNG) from the future Train 4 liquefaction unit at the Rio Grande LNG facility, which is currently under construction in southern Texas. The SPA, of a duration of twenty years, is subject to NextDecade taking a positive Final Investment Decision (FID) on Train 4.
'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', said Gregory Joffroy, Senior Vice President LNG at TotalEnergies.
'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', said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. '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', he added.
TotalEnergies holds a 16.7% stake in the first phase of the Rio Grande LNG facility, which consists in 3 LNG trains currently under construction in southern Texas. TotalEnergies previously agreed to purchase 5.4 Mtpa of the approximately 17.5 Mtpa produced by the first phase, which is expected to start up in 2027. TotalEnergies also holds a 17.5% stake in NextDecade, Rio Grande’s shareholder and operator.
Source: TotalEnergies
