PARIS, FRANCE: TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE), Global Infrastructure Partners (GIP) NextDecade Corporation, and their partners, GIC and Mubadala, have decided to invest in phase 1 of Rio Grande LNG (RGLNG), a natural gas liquefaction (LNG) project in South Texas.
Phase 1 will consist of 3 liquefaction trains with a total capacity of 17.5 million tons per year (Mtpa) and a cost of $14.8 billion. The project will be built by Bechtel and is expected to start operations in 2027. The project will be financed by equity contributions from the partners and by a debt contribution from an international banks’ consortium.
As part of the decision, TotalEnergies:
acquires a 16.67% stake in the joint-venture in charge of phase 1, and will participate in its equity contributions, for a total amount of $1.1 billion.
will hold a total 17.5% stake in NextDecade for a total amount of $219 million. A first tranche of 5.06% was acquired last June, and a second tranche will be acquired in the next few days to increase this stake to 12.47% and a third tranche of 5.03 % shall be acquired before the end of the year.
TotalEnergies will also buy 5.4 Mtpa of LNG from the production of phase 1 for 20 years.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said that the project will enable TotalEnergies to access competitive LNG with low production costs and to contribute to European gas security and Asian energy transition.
Matt Schatzman, Chairman and CEO of NextDecade, said that having TotalEnergies as a key partner in the project is an honor and that they will work together to deliver lower carbon-intensive LNG to customers around the globe.
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