TotalEnergies has exercised an LNG purchase option on Train 4 of NextDecade’s Rio Grande LNG facility.
In addition, subsidiaries of both companies executed a long-term LNG sale and purchase agreement (SPA) for offtake from the train.
Under the terms of the SPA, TotalEnergies Gas & Power North America will purchase 1.5 mill tonnes per annum of LNG for 20 years on a free-on-board (FOB) basis at a price indexed to Henry Hub, subject to Train 4’s positive final Investment decision (FID).
“TotalEnergies has been a key contributor to the success of Rio Grande LNG Phase 1, and we are pleased to be expanding our strategic partnership with TotalEnergies with the execution of this Train 4 SPA,” said Matt Schatzman, NextDecade’s Chairman and CEO. “This SPA completes the commercial support we need for Rio Grande LNG Train 4, and we are now focused on progressing Train 4 toward a positive FID.”
NextDecade has contracted a total of 4.6 mill tonnes per annum of LNG from Train 4 on a long-term basis and expects existing long-term commercial agreements to be sufficient to support a positive FID, the company said.
Achieving a positive FID on Train 4 will be subject to, among other things, obtaining adequate financing for its construction, including its related infrastructure.
