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PARIS - TotalEnergies (EPA:TTEF) (Paris:TTE) (LSE:TTE) (NYSE:TTE) has entered into a Sales and Purchase Agreement (SPA) with NextDecade (NASDAQ:NEXT) Corporation to acquire 1.5 million tons per annum (Mtpa) of liquefied natural gas (LNG) from the planned Train 4 at the Rio Grande LNG facility in Texas. This agreement, spanning twenty years, is contingent upon NextDecade’s positive Final Investment Decision (FID) on Train 4.
Gregory Joffroy, Senior Vice President LNG at TotalEnergies, expressed satisfaction with the new agreement, which he said would support NextDecade’s FID and the commencement of its financing process. He noted that the deal would reinforce TotalEnergies’ capacity to supply its customers competitively, emphasizing the company’s status as a leading LNG exporter from the United States.
Matt Schatzman, Chairman and Chief Executive Officer of NextDecade, also commented on the partnership’s expansion with TotalEnergies through the Train 4 SPA. Schatzman highlighted that the agreement provides the commercial backing required for Train 4 and that the focus is now on achieving a positive FID.
TotalEnergies currently holds a 16.7% stake in the initial phase of the Rio Grande LNG project, which includes three LNG trains under construction and scheduled to begin operations in 2027. The company has previously committed to purchasing 5.4 Mtpa out of the approximate 17.5 Mtpa output expected from the first phase. Additionally, TotalEnergies owns a 17.5% stake in NextDecade, the shareholder and operator of Rio Grande.
The French multinational is the world’s third-largest LNG player and aims to grow its natural gas share in its sales mix to about 50% by 2030. This strategy is part of its efforts to reduce carbon emissions, eliminate methane emissions related to the gas value chain, and support the transition from coal to natural gas in collaboration with local partners.
The information for this article is based on a press release statement.
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