HomeNewsTotalEnergies will not invest in NextDecade’s Train 5 LNG project

TotalEnergies will not invest in NextDecade’s Train 5 LNG project

8/7/2025
  • TotalEnergies prioritizes LNG projects with low liquefaction costs
  • Tariffs raised Rio Grande construction costs
  • TotalEnergies pushing ahead with its own projects in Mozambique, PNG

TotalEnergies has decided not to invest in U.S. developer NextDecade's fifth LNG Rio Grande export facility in Texas or to buy LNG from its output, two sources familiar with the matter said. The French energy major is prioritizing lower-cost projects elsewhere as it reassesses its global LNG strategy, the sources said.

The decision marks a shift for TotalEnergies, one of the world’s top three LNG exporters and the largest buyer of U.S. LNG. The company is focusing on restarting construction of its $20-billion Mozambique LNG project and expanding its portfolio through deals in Canada, Qatar, and elsewhere.

NextDecade said it was targeting mid-September for a final investment decision on Train 5 and was working to contract an additional 2.5 MMtpy under LNG supply deals to support the project.

NextDecade is contending with rising construction costs due to U.S. steel tariffs, stiff competition from U.S. rival Venture Global, and a projected global LNG supply glut that could depress prices from 2027.

TotalEnergies has a 17.5% stake in NextDecade and a 16.7% interest in Phase 1 of the Rio Grande project, which includes the first three trains. In April, it signed a 20-year deal to purchase 1.5 MMtpy from Train 4.

In an interview with Reuters in February, TotalEnergies CEO Patrick Pouyanné expressed interest in supporting a fifth train at Rio Grande. But on a July earnings call, he emphasized future investments in Mozambique, Qatar, Papua New Guinea, and Canada, citing low costs. He noted that Train 5's marketing was NextDecade’s responsibility.

He also said that U.S. steel tariffs had raised Rio Grande LNG's project costs, though by less than 10%.

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