TotalEnergies reaches final investment decision with partners on Rio Grande LNG Train 4
Published by Abby Butler,
Editorial Assistant
LNG Industry,
TotalEnergies has signed agreements with NextDecade to take a 10% stake in the joint venture developing Train 4 of Rio Grande LNG (RGLNG), an LNG plant project located in South Texas.
In addition to the 10% held directly, TotalEnergies will hold indirectly next to 7% in this Train 4 as a 17.1% shareholder of NextDecade.
At the same time, TotalEnergies, NextDecade (40%), and their partners Global Infrastructure Partners (GIP, 36.9%), GIC (7.9%), and Mubadala (5.2%) made the final investment decision (FID) for the development of Train 4.
This fourth train, which has a capacity of approximately 6 million tpy, will bring the plant’s total capacity to approximately 24 million tpy when it comes online in 2030. The project’s overall cost will be financed with approximately 40% equity and 60% debt.
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, commented: “We are very pleased with the FID of RGLNG Train 4. This project from which we will offtake 1.5 million tpy strengthens our LNG export capacity from the US. It gives TotalEnergies access to competitive LNG thanks to its low production costs. The LNG from this fourth train will increase TotalEnergies’ US LNG export capacity to over 16 million tpy by 2030, further enhancing our ability to contribute to gas supply and building on our 10% market share worldwide.”
Matt Schatzman, NextDecade Chairman and CEO, added: “We are pleased to have TotalEnergies, our largest LNG customer and equity partner for Phase 1 of Rio Grande LNG, extend their commitment to our project through Train 4. LNG exported by TotalEnergies from our project will provide affordable, reliable, and secure energy to customers around the world.”
TotalEnergies previously signed a Sales and Purchase Agreement with NextDecade to offtake 1.5 million tpy of LNG for 20 years from the future Train 4. TotalEnergies currently holds a 16.7% interest in Phase 1 of Rio Grande LNG and will offtake 5.4 million tpy. Phase 1 includes three liquefaction trains under construction in South Texas and is expected to start operations in 2027. TotalEnergies also holds a 17.1% stake in NextDecade, Rio Grande LNG’s shareholder and operator.
Read the article online at: https://www.lngindustry.com/small-scale-lng/11092025/totalenergies-reaches-final-investment-decision-with-partners-on-rio-grande-lng-train-4/
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