BAKU, Azerbaijan, April 15. TotalEnergies has signed a long-term Sales and Purchase Agreement (SPA) with NextDecade for the supply of 1.5 million tons per annum (Mtpa) of liquefied natural gas (LNG) from Train 4 of the planned Rio Grande LNG facility in Texas, Trend reports.
The agreement, which will be in effect for 20 years, is conditional upon NextDecade reaching a positive Final Investment Decision (FID) for Train 4.
The SPA marks an extension of the partnership between the two companies. TotalEnergies currently holds a 16.7% interest in Phase 1 of the Rio Grande LNG project, which includes three liquefaction trains under construction. The first phase is expected to begin operations in 2027, with an estimated total output of 17.5 Mtpa. Under previous agreements, TotalEnergies is set to purchase 5.4 Mtpa from this initial phase.
TotalEnergies also holds a 17.5% ownership stake in NextDecade, the developer and operator of the Rio Grande LNG facility.
Representatives from both companies confirmed that the latest SPA supports the advancement of the Train 4 project and will contribute to its financing process, pending a positive FID.