TotalEnergies, along with its partners, has announced the final investment decision to commence phase one of the Rio Grande liquefied natural gas project located in South Texas.
In this regard, the French oil-and-gas major will acquire a 16.67% stake in the joint venture responsible for the project’s first phase. The company will contribute a total amount of $1.1 billion towards the project’s equity.
Global Infrastructure Partners, NextDecade, and their partners GIC and Mubadala have made this important investment decision. The project will be financed through equity contributions from the partners, as well as a debt contribution from an international banks’ consortium.
Under the agreement, TotalEnergies will also hold a 17.5% stake in NextDecade, with an investment of $219 million. Additionally, they will have the right to offtake 5.4 million metric tons per year of liquefied natural gas from the first-phase production for a period of 20 years.
Phase one of the project includes the construction of three liquefaction trains, capable of producing a combined total capacity of 17.5 million tons per year. The capital expenditure for this phase amounts to $14.8 billion.