TotalEnergies has signed a Gross sales and Buy Settlement (SPA) with NextDecade to purchase 1.5 million tons every year (Mtpa) of liquefied pure fuel (LNG) from the long run Prepare 4 liquefaction unit on the Rio Grande LNG facility. The SPA, of a period of twenty years, is topic to NextDecade taking a constructive Last Funding Choice (FID) on Prepare 4.
“We’re happy to signal with NextDecade a brand new 1.5 Mtpa SPA from the long run Prepare 4 of Rio Grande,” stated Gregory Joffroy, Senior Vice President LNG at TotalEnergies. “This settlement will allow NextDecade to progress in the direction of the FID of the challenge and notably to begin its financing course of. As soon as efficient, the settlement will assist strengthen TotalEnergies’ place to serve its clients with a aggressive provide, because the main exporter of LNG from america.”
“TotalEnergies has been a key contributor to the success of Rio Grande LNG Section 1, and we’re happy to be increasing our strategic partnership with TotalEnergies with the execution of this Prepare 4 SPA,” stated Matt Schatzman, CEO and Chairman of NextDecade. “This SPA completes the industrial help we want for Rio Grande LNG Prepare 4, and we at the moment are centered on progressing Prepare 4 towards a constructive FID.”
TotalEnergies holds a 16.7% stake within the first part of the Rio Grande LNG facility, which consists in 3 LNG trains at the moment beneath development in southern Texas. TotalEnergies beforehand agreed to buy 5.4 Mtpa of the roughly 17.5 Mtpa produced by the primary part, which is anticipated to begin up in 2027. TotalEnergies additionally holds a 17.5% stake in NextDecade, Rio Grande’s shareholder and operator.