TotalEnergies, partners reach FID on fourth train at Rio Grande LNG

TotalEnergies has signed agreements with NextDecade to take a 10% stake in the joint venture developing Train 4 of Rio Grande LNG (RGLNG), a liquefied natural gas (LNG) plant project located in South Texas. In addition to the 10% held directly, TotalEnergies will hold indirectly next to 7% in this Train 4 as a 17.1% shareholder of NextDecade. (Image: TotalEnergies)

TotalEnergies and its partners have taken a final investment decision (FID) to move forward with Train 4 at the Rio Grande LNG project in South Texas, marking another expansion milestone for one of the largest liquefaction developments in North America.

The decision was made jointly by NextDecade, which holds a 40% stake in the new train, Global Infrastructure Partners (36.9%), TotalEnergies (10% directly, plus an indirect 7% through its 17.1% shareholding in NextDecade), GIC (7.9%) and Mubadala (5.2%).

Train 4 will add 6 million tons per annum (mtpa) of export capacity, bringing the total nameplate capacity at the facility to about 24 mtpa when operations begin in 2030. The project will be financed with roughly 40% equity and 60% debt.

Strategic growth for TotalEnergies

Stéphane Michel, president of gas, renewables and power at TotalEnergies, said the FID strengthens the company’s U.S. LNG export platform.

“We are very pleased with the FID of RGLNG Train 4. This project from which we will offtake 1.5 mtpa strengthens our LNG export capacity from the United States,” Michel said. “It gives TotalEnergies access to competitive LNG thanks to its low production costs. The LNG from this fourth train will increase TotalEnergies’ U.S. LNG export capacity to over 16 mtpa by 2030, further enhancing our ability to contribute to gas supply and building on our 10% market share worldwide.”

The French major already has a 16.7% stake in Rio Grande LNG Phase 1, which includes three liquefaction trains under construction. That first phase is expected to start up in 2027 and will supply TotalEnergies with 5.4 mtpa under long-term offtake agreements. The company also signed a sales and purchase agreement to lift 1.5 mtpa from Train 4 for 20 years.

NextDecade Chairman and CEO Matt Schatzman said the Train 4 decision reflects the strength of its commercial partnerships.

“We are pleased to have TotalEnergies, our largest LNG customer and equity partner for Phase 1 of Rio Grande LNG, extend their commitment to our project through Train 4,” Schatzman said. “LNG exported by TotalEnergies from our project will provide affordable, reliable, and secure energy to customers around the world.”

A growing LNG footprint

TotalEnergies is the world’s third-largest LNG player, with a global portfolio of about 40 million tons per year in 2024 and interests in liquefaction plants across multiple regions. The company also holds regasification capacity of more than 20 mtpa in Europe and has expanded into LNG bunkering and trading.

As part of its strategy, TotalEnergies aims to increase the share of natural gas in its sales mix to nearly 50% by 2030, positioning the fuel as a cornerstone of its efforts to reduce emissions and enable coal-to-gas switching in emerging markets.

The Train 4 expansion at Rio Grande LNG underscores that ambition, adding long-term U.S. volumes at competitive cost and reinforcing TotalEnergies’ integrated position across the LNG value chain.