TotalEnergies, NextDecade, GIP to Develop Texas LNG Project

   By Adria Calatayud 
 

TotalEnergies said Wednesday that it has signed an agreement with U.S. energy company NextDecade and investment firm Global Infrastructure Partners to jointly develop the first phase of a liquefied natural gas project in Texas.

Under the agreement, TotalEnergies will take a 16.7% interest in the first phase of the Rio Grande LNG project, which consists of three liquefaction trains with total annual capacity of 17.5 million metric tons a year, it said. GIP will be the majority shareholder and NextDecade will be the operator, TotalEnergies said.

The French energy major will buy a 17.5% stake in NextDecade for $219 million in three steps as part of the deal, with an initial 5.06% stake already acquired on Tuesday for $40 million.

Final investment decision on the project is expected in coming weeks for start-up in 2027, TotalEnergies said. The project has received necessary authorizations from U.S. Federal Energy Regulatory Commission, the company said.

TotalEnergies said it will take 5.4 million tons a year from the first phase for 20 years, bringing its U.S. LNG export capacity to more than 15 million tons a year by 2030.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

June 14, 2023 03:15 ET (07:15 GMT)

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