TotalEnergies and its partners make final investment decision for Texan project

This first phase comprises 3 liquefaction trains with a total capacity of 17.5 million tpy and CAPEX of US$14.8 billion. The engineering, procurement, and construction (EPC) contract has been awarded to Bechtel, and commissioning of the plant is scheduled for 2027. The project will be financed by equity contributions from the partners and by a debt contribution concluded today with an international banks’ consortium.

As a result of this decision, and according to the terms of the agreement signed in June, TotalEnergies will acquire the following:

• A 16.67% stake in the joint-venture in charge of this first phase, and will participate in its equity contributions, for a total amount of US$1.1 billion.
• A 17.5% stake in NextDecade for a total amount of US$ 219 million. A first tranche of 5.06% was acquired last June, and a second tranche will be acquired in the next few days to increase this stake to 12.47% and a third tranche of 5.03 % shall be acquired before the end of the year.
• An offtake of 5.4 million tpy of LNG from the production of this phase for 20 years.

“We are delighted with this final investment decision that enable us to launch the construction of this new LNG liquefaction plant in the Unites States, to which TotalEnergies will contribute its expertise in the development of major LNG projects,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies. “This project gives TotalEnergies access to competitive LNG thanks to its low production costs. LNG from this first phase will boost TotalEnergies US LNG export capacity to over 15 million tpy by 2030, and thus our ability to contribute to European gas security, and to provide customers in Asia with an alternative form of energy that is half as emissive as coal.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/14072023/totalenergies-and-its-partners-make-final-investment-decision-for-texan-project/