By Adria Calatayud 
 

TotalEnergies said Wednesday that it has signed an agreement with U.S. energy company NextDecade and investment firm Global Infrastructure Partners to jointly develop the first phase of a liquefied natural gas project in Texas.

Under the agreement, TotalEnergies will take a 16.7% interest in the first phase of the Rio Grande LNG project, which consists of three liquefaction trains with total annual capacity of 17.5 million metric tons a year, it said. GIP will be the majority shareholder and NextDecade will be the operator, TotalEnergies said.

The French energy major will buy a 17.5% stake in NextDecade for $219 million in three steps as part of the deal, with an initial 5.06% stake already acquired on Tuesday for $40 million.

Final investment decision on the project is expected in coming weeks for start-up in 2027, TotalEnergies said. The project has received necessary authorizations from U.S. Federal Energy Regulatory Commission, the company said.

TotalEnergies said it will take 5.4 million tons a year from the first phase for 20 years, bringing its U.S. LNG export capacity to more than 15 million tons a year by 2030.

 

Write to Adria Calatayud at adria.calatayud@dowjones.com

 

(END) Dow Jones Newswires

June 14, 2023 03:15 ET (07:15 GMT)

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