TotalEnergies has formalised its 10% stake in the development of the fourth liquefaction train of the Rio Grande LNG project, located in southern Texas. This new train, with a capacity of 6 million tonnes per year, will bring the plant’s total capacity to approximately 24 million tonnes per year (Mtpa) by 2030.
A financing structure backed by international capital partnerships
The final investment decision was made jointly by the project shareholders: NextDecade Corporation (40%), Global Infrastructure Partners (36.9%), GIC (7.9%), Mubadala (5.2%), and TotalEnergies. Financing for Train 4 will be secured with 40% in equity and 60% through debt. In addition to its direct stake, TotalEnergies also holds nearly 7% indirectly through its 17.1% shareholding in NextDecade.
Guaranteed access to 1.5 Mtpa of LNG over 20 years
TotalEnergies has signed a long-term sale and purchase agreement (SPA) for 1.5 Mtpa of liquefied natural gas (LNG) from this new train over a 20-year period. This volume adds to the 5.4 Mtpa already contracted under the project’s first phase, which includes three trains currently under construction and scheduled to begin operations in 2027.
A strategic lever to consolidate global market share
With this new operation, TotalEnergies expects to surpass 16 Mtpa of LNG exports from the United States by 2030. The French company aims to maintain a 10% global market share in the LNG sector. In 2024, TotalEnergies sold 40 Mt of LNG, supported by an integrated supply chain covering production, transport, trading, and access to more than 20 Mtpa of regasification capacity in Europe.
Texas as a strategic platform for LNG exports
The Rio Grande LNG project is a key component of TotalEnergies’ growth strategy in LNG. Located near the abundant gas resources of the Permian Basin, the site benefits from competitive production costs. By participating in the development of Train 4, TotalEnergies continues to anchor itself in a key area for exports to Asian and European markets.
