Patrick Pouyanné, Chief Executive Officer of TotalEnergies, stated that NextDecade, a US liquefied natural gas (LNG) developer, would announce during the day a final investment decision (Final Investment Decision, FID) regarding a new liquefaction unit at its Rio Grande LNG project, located near Brownsville, Texas. This declaration was made during the GasTech conference held in Milan.
A strategic project supported by contractual commitments
The decision concerns the fifth liquefaction train at the site, which would add to the first three already engaged in the project’s initial phase. According to NextDecade, the objective was to reach an investment decision for the fourth and fifth units by mid-September. On Monday, the company announced it had fully commercialised the fifth train by signing a 20-year supply agreement with ConocoPhillips, one of the largest independent oil and gas producers in the United States.
A strategic stake for TotalEnergies
TotalEnergies currently holds a 17.5% stake in NextDecade and 16.7% in the first phase of the Rio Grande LNG project. In April, the French major signed a 20-year contract to purchase 1.5 million tonnes per annum (mtpa) from train 4. However, according to information published in August, TotalEnergies reportedly declined its option to participate in the fifth train.
Political meetings and expansion outlook
Patrick Pouyanné also indicated that he would meet later in the day with the US Secretaries of Energy and the Interior to discuss the group’s investments in the country. “For a company like TotalEnergies, the United States is full of energy – we are investing in the Gulf of Mexico with Chevron, we continue to explore gas and LNG, and we will announce a new train for Rio Grande LNG,” he said.
NextDecade did not immediately respond to a request for comment made outside US business hours.
