REG-TotalEnergies SE United States: TotalEnergies Strengthens its Position in LNG by Partnering with GIP and NextDecade on a new LNG project in Texas

TotalEnergies SEAnnouncement

14/06/2023 08:15

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United States: TotalEnergies Strengthens its Position in LNG by Partnering
with GIP and NextDecade on a new LNG project in Texas

 

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) has signed a framework
agreement with the US company NextDecade to participate in the development of
the Rio Grande LNG (RGLNG) project, a liquefied natural gas (LNG) plant
located in South Texas. Under the terms of the agreement, and subject to
execution of definitive documentation and final investment decision:


 * TotalEnergies shall hold a 16.7% interest in the first phase of the project,
which consists of three liquefaction trains with total annual capacity of 17.5
million tons per annum (Mtpa).


 * TotalEnergies shall offtake 5.4 Mtpa of LNG from this first phase for twenty
years, which brings the Company’s US LNG export capacity to more than 15
Mtpa by 2030.


 * TotalEnergies shall acquire a 17.5% interest in NextDecade in three tranches
for a global amount of $219 million – the first tranche of 5,06% having
already been acquired on June 13, 2023, for $40 million.


 * TotalEnergies shall also have a right to participate in further phases of the
project and in a carbon capture and storage project (CCS) planned by
NextDecade to reduce the emissions generated by the project.

The first phase of RGLNG, whose final investment decision is expected in the
coming weeks for start-up in 2027, will be developed, besides TotalEnergies,
by NextDecade as shareholder and operator and Global Infrastructure Partners
(GIP) as majority shareholder. The project has already received all the
necessary authorizations from FERC, the US Federal Energy Regulatory
Commission.

“We are delighted to join forces with NextDecade and GIP on the development
of this new US LNG project, for which TotalEnergies will leverage its
extensive experience in LNG and technical expertise in major industrial
project development,” said Patrick Pouyanné, Chairman and CEO of
TotalEnergies. “Our involvement in this project will add 5.4 million tons
per year of LNG to our global portfolio, strengthening our ability to ensure
Europe's security of gas supply, and to provide our Asian customers with an
alternative fuel to coal that emits half its CO(2) emissions.”

“This partnership with TotalEnergies and GIP marks a momentous milestone for
NextDecade,” said Matt Schatzman, NextDecade Chairman and Chief Executive
Officer. “We are excited to work with GIP and TotalEnergies on RGLNG and our
proposed CCS project. We are also eager to grow our partnership with GIP and
TotalEnergies, focusing on our shared vision to reduce carbon emissions in the
energy sector.”

“With the world increasingly moving toward sustainable solutions, this
partnership among GIP, TotalEnergies and NextDecade reinforces our shared
commitment to helping lead the transition and shaping of the future of
energy,” said Bayo Ogunlesi, Chairman and Chief Executive Officer of Global
Infrastructure Partners. “This venture marks a critical step in displacing
coal usage and upholds GIP’s commitment to promoting decarbonization, energy
security and energy affordability. Our shared vision with TotalEnergies and
NextDecade, combined with our capabilities, will undoubtedly help catalyze the
development of cleaner energy.”

TotalEnergies, the world’s third largest LNG player

TotalEnergies is the world’s third largest LNG player with a market share of
around 12% and a global portfolio of about 50 Mt/y thanks to its interests in
liquefaction plants in all geographies. The Company benefits from an
integrated position across the LNG value chain, including production,
transportation, access to more than 20 Mt/y of regasification capacity in
Europe, trading, and LNG bunkering. TotalEnergies’ ambition is to increase
the share of natural gas in its sales mix to close to 50% by 2030, to reduce
carbon emissions and eliminate methane emissions associated with the gas value
chain, and to work with local partners to promote the transition from coal to
natural gas.

About TotalEnergies

TotalEnergies is a global multi-energy company that produces and markets
energies: oil and biofuels, natural gas and green gases, renewables and
electricity. Our more than 100,000 employees are committed to energy that is
ever more affordable, cleaner, more reliable and accessible to as many people
as possible. Active in nearly 130 countries, TotalEnergies puts sustainable
development in all its dimensions at the heart of its projects and operations
to contribute to the well-being of people.

TotalEnergies Contacts

Media Relations:+33 (0)1 47 44 46 99l presse@totalenergies.com
(mailto:presse@totalenergies.com) l @TotalEnergiesPR 
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Investor Relations:+33 (0)1 47 44 46 46 l ir@totalenergies.com
(mailto:ir@totalenergies.com)

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Cautionary Note

The terms “TotalEnergies”, “TotalEnergies company” or “Company” in
this document are used to designate TotalEnergies SE and the consolidated
entities that are directly or indirectly controlled by TotalEnergies SE.
Likewise, the words “we”, “us” and “our” may also be used to refer
to these entities or to their employees. The entities in which TotalEnergies
SE directly or indirectly owns a shareholding are separate legal entities.
This document may contain forward-looking information and statements that are
based on a number of economic data and assumptions made in a given economic,
competitive and regulatory environment. They may prove to be inaccurate in the
future and are subject to a number of risk factors. Neither TotalEnergies SE
nor any of its subsidiaries assumes any obligation to update publicly any
forward-looking information or statement, objectives or trends contained in
this document whether as a result of new information, future events or
otherwise. Information concerning risk factors, that may affect
TotalEnergies’ financial results or activities is provided in the most
recent Universal Registration Document, the French-language version of which
is filed by TotalEnergies SE with the French securities regulator Autorité
des Marchés Financiers (AMF), and in the Form 20-F filed with the United
States Securities and Exchange Commission (SEC).



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