The French hydrocarbon giant TotalEnergies announced on Wednesday that it is joining forces with the American NextDecade and Global Infrastructure Partners to invest in the Texas Rio Grande terminal project, a natural gas (LNG) liquefaction plant. “TotalEnergies will hold a stake of 16 7% in the first phase” of the Rio Grande project, “composed of 3 liquefaction trains”, the company said in a press release, without revealing the amount of its investment. This plant located in southern Texas, whose production should begin in 2027, will have during its first phase a total production capacity of 17.5 million tonnes per year (Mtpa), to be divided between its three shareholders.
After sharing with NextDecade, which also operates the plant, and the majority shareholder Global Infrastructure Partners (GIP), TotalEnergies will withdraw from the project 5.4 million tonnes of liquefied gas per year for 20 years, the group said in a press release. . In addition to its direct investment in the plant, TotalEnergies said it would acquire “a 17.5% stake in NextDecade in three tranches for a total amount of $219 million”. “A first tranche of 5.06%” has “already been acquired on June 13, 2023 for 40 million dollars”, he specifies.
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This new project will allow TotalEnergies, which is positioned as the world’s third-largest LNG player and emphasizes gas rather than oil in its strategy, to come closer to its objective of selling nearly 50 Mtpa by 2025. and maintain a 10% global market share in this segment. The future Texas Rio Grande terminal had already attracted the interest of French Engie, which is seeking to diversify its gas supplies outside of Russia. At the start of May, Engie announced that it would buy 1.75 million tonnes per year of LNG from the plant from NextDecade, drawing criticism from environmental activists. They denounce, among other things, the ecological and health “risks” linked to “this mega-project located in the heart of the rich and vulnerable ecosystem of a nature reserve”.
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2023-06-14 08:41:23
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