TotalEnergies has entered into a Strategic Partnership Agreement to purchase 1.5 Mtpa from the future Train 4 of the Rio Grande LNG facility, reinforcing its commitment to expanding its LNG supply capabilities.

Target Information

TotalEnergies holds a 16.7% stake in the first phase of the Rio Grande LNG facility located in southern Texas. This facility consists of three LNG trains that are currently under construction and are projected to begin operations in 2027. In addition to its ownership stake, TotalEnergies has previously entered into an agreement to purchase 5.4 million tons per annum (Mtpa) of liquefied natural gas (LNG) from the phase one project, which will produce approximately 17.5 Mtpa. Furthermore, TotalEnergies possesses a 17.5% interest in NextDecade, the company responsible for operating and managing the Rio Grande LNG facility.

Industry Overview in the United States

The LNG industry in the United States has experienced remarkable growth in recent years, driven by the country's abundant natural gas resources and the increasing demand for cleaner energy alternatives. As one of the leading LNG exporters globally, the U.S. has invested heavily in the development of infrastructure, including liquefaction plants and export terminals, to accommodate the rising global demand for LNG. The Rio Grande LNG project signifies a critical part of this expansion, enabling the U.S. to solidify its position in the international energy market.

Furthermore, the shift towards natural gas as a transition fuel aligns with global energy trends aimed at reducing carbon emissions. The Biden administration's focus on sustainable energy and environmental polic