Wedoany.com Report-Apr. 15, TotalEnergies has entered into a 20-year Sales and Purchase Agreement (SPA) with NextDecade to secure 1.5 million tons per annum (Mtpa) of liquefied natural gas (LNG) from Train 4 of the proposed Rio Grande LNG facility in Texas. The agreement’s implementation depends on NextDecade achieving a positive Final Investment Decision (FID) for Train 4.
This new SPA strengthens the ongoing collaboration between TotalEnergies and NextDecade. TotalEnergies already owns a 16.7% stake in Phase 1 of the Rio Grande LNG project, which consists of three liquefaction trains currently under construction. Phase 1 is slated to commence operations in 2027, with a projected capacity of 17.5 Mtpa. Through earlier agreements, TotalEnergies is committed to purchasing 5.4 Mtpa from this initial phase.
Additionally, TotalEnergies holds a 17.5% ownership interest in NextDecade, the company developing and managing the Rio Grande LNG facility. This partnership underscores a shared focus on expanding LNG supply capabilities to meet global energy demands.
Representatives from both companies stated: “The latest SPA supports the advancement of the Train 4 project and will contribute to its financing process, pending a positive FID.” This step is expected to facilitate the project’s progress and ensure its financial viability.
The agreement aligns with efforts to enhance LNG availability through reliable and efficient infrastructure. By securing supply from the Rio Grande facility, TotalEnergies reinforces its role in the global energy market while supporting the development of advanced LNG projects in Texas. The collaboration is poised to deliver sustainable energy solutions over the long term.
