TotalEnergies inked a framework agreement with the US company NextDecade to participate in the development of the Rio Grande LNG (RGLNG) project, a liquefied natural gas (LNG) plant located in South Texas.
NextDecade and Global Infrastructure Partners and TotalEnergies will develop the first phase of the project, consisting of three liquefaction trains with a total annual capacity of 17.5 million tons per annum (Mtpa).
With this agreement, TotalEnergies will hold a 16.7% interest in the first phase of the project, which is expected to start in 2027.
The company will also offtake 5.4 Mtpa of LNG from this first phase for twenty years, which brings the company鈥檚 US LNG export capacity to more than 15 Mtpa by 2030.
Acquiring the first tranche of 5.06% on June 13, TotalEnergies will obtain a 17.5% interest in NextDecade in three tranches for $219 million.
To reduce project emissions, the company will also have the option to participate in a carbon capture and storage project proposed by NextDecade while participating in subsequent phases of the project.
The project has already received all the necessary authorizations from the US Federal Energy Regulatory Commission.
"TotalEnergies will leverage its extensive experience in LNG and technical expertise in major industrial project development," Patrick Pouyanne, chairman and CEO of TotalEnergies, was quoted as saying in a statement.
Pouyanne stated that the project will enlarge the company's global portfolio through the addition of 5.4 Mtpa, strengthen its ability to secure Europe's gas supply and help provide Asian customers with an alternative fuel to coal.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr