New partnership on LNG project in Texas

• TotalEnergies shall hold a 16.7% interest in the first phase of the project, which consists of three liquefaction trains with total annual capacity of 17.5 million tpy.
• TotalEnergies shall offtake 5.4 million tpy of LNG from this first phase for twenty years, which brings the Company’s US LNG export capacity to more than 15 million tpy by 2030.
• TotalEnergies shall acquire a 17.5% interest in NextDecade in three segments, for a global amount of US$219 million – the first part of 5.06% having already been acquired on 13th June 2023, for US$40 million.
• TotalEnergies shall also have a right to participate in further phases of the project and in a carbon capture and storage project (CCS) planned by NextDecade to reduce the emissions generated by the project.

The first phase of RGLNG, will be developed, by NextDecade, alongside TotalEnergies, and Global Infrastructure Partners (GIP) as majority shareholder. The project has already received all the necessary authorisations from FERC, the US Federal Energy Regulatory Commission.

"We are delighted to join forces with NextDecade and GIP on the development of this new US LNG project, for which TotalEnergies will leverage its extensive experience in LNG and technical expertise in major industrial project development," said Patrick Pouyanné, Chairman and CEO of TotalEnergies. “Our involvement in this project will add 5.4 million tpy of LNG to our global portfolio, strengthening our ability to ensure Europe's security of gas supply, and to provide our Asian customers with an alternative fuel to coal that emits half its CO₂ emissions.”

“This partnership with TotalEnergies and GIP marks a momentous milestone for NextDecade,” commented Matt Schatzman, NextDecade Chairman and Chief Executive Officer. “We are excited to work with GIP and TotalEnergies on RGLNG and our proposed CCS project. We are also eager to grow our partnership with GIP and TotalEnergies, focusing on our shared vision to reduce carbon emissions in the energy sector.”

“With the world increasingly moving toward sustainable solutions, this partnership among GIP, TotalEnergies and NextDecade reinforces our shared commitment to helping lead the transition and shaping of the future of energy,” added Bayo Ogunlesi, Chairman and Chief Executive Officer of Global Infrastructure Partners. “This venture marks a critical step in displacing coal usage and upholds GIP’s commitment to promoting decarbonisation, energy security and energy affordability. Our shared vision with TotalEnergies and NextDecade, combined with our capabilities, will undoubtedly help catalyse the development of cleaner energy.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/14062023/new-partnership-on-lng-project-in-texas/