Wedoany.com Report-Sept. 11, TotalEnergies (TTEF.PA) announced on Wednesday that it will acquire a 10% stake in a joint venture with U.S.-based liquefied natural gas producer NextDecade (NEXT.O) for the development of the fourth liquefaction train of the Rio Grande LNG project in Texas. The additional train, referred to as Train 4, will expand the project’s overall capacity and strengthen TotalEnergies’ position in the global LNG market.

The logo of TotalEnergies is seen at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025.

NextDecade confirmed on Tuesday that it had reached a final investment decision for Train 4. The unit is scheduled to begin operations in 2030, with an expected LNG production capacity of nearly 6 million tonnes per annum. Once fully developed, the Rio Grande LNG facility is projected to reach a total production capacity of about 24 million tonnes per annum.

Stephane Michel, President of Gas, Renewables & Power at TotalEnergies, said: "This project from which we will offtake 1.5 mtpa strengthens our LNG export capacity from the United States." The company also highlighted that, beyond its direct 10% stake, it will indirectly hold close to 7% of Train 4 through its 17.1% shareholding in NextDecade.

According to TotalEnergies, financing for Train 4 will follow a structure of about 40% equity and 60% debt. This model is consistent with other large-scale LNG infrastructure projects, designed to balance shareholder contributions with long-term financing.

The Rio Grande LNG project represents a significant investment in expanding U.S. LNG export capacity at a time of increasing global demand. Developers have noted that the current regulatory environment in the United States is favorable for LNG projects, following decisions that support the approval of new export permits. This has enabled companies like NextDecade and its partners to advance major projects with long-term international supply potential.

For TotalEnergies, the partnership with NextDecade reflects its strategy to expand its LNG portfolio, ensuring access to additional volumes from the United States. The offtake agreement tied to Train 4 will allow the company to strengthen supply commitments with customers while diversifying its energy sources.

Industry observers see the development of Train 4 as a continuation of the Rio Grande project’s phased approach. Each train adds significant new capacity, and with Train 4, the facility is expected to play a larger role in meeting global LNG demand, particularly in markets seeking reliable supply.

The decision marks another step in the broader expansion of LNG infrastructure, with projects in the United States increasingly serving as a foundation for global exports. With TotalEnergies’ investment and offtake commitment, Train 4 positions the Rio Grande LNG facility as one of the key contributors to future supply growth.

The partnership between TotalEnergies and NextDecade demonstrates how international and U.S. companies are cooperating to build large-scale energy infrastructure that supports both corporate growth and broader market needs.