A unit of French oil major TotalEnergies currently holds
44.9 million shares of NextDecade, bought for $219 million in June as part of a
broader deal to develop NextDecade's Rio Grande LNG export project in south
Texas that has faced repeated delays.
NextDecade, which signed a contract to supply 5.4 million
tons of LNG per year to TotalEnergies, said in a filing dated Dec. 22 it would
not receive any proceeds from any such future offerings.
The prospectus with the U.S. Securities and Exchange
Commission registers the shares owned by TotalEnergies and enables them to sell
them in the future, said NextDecade spokesperson Susan Richardson.
"There is no current offering of shares. While we
cannot control the actions of our shareholders...we view them as a long-term
strategic partner," Richardson said.
TotalEnergies did not immediately respond to a request for
comment.
TotalEnergies' decision is likely a reflection that, having
helped get the LNG facility to a final investment decision, an equity position
was no longer required, said Rapidan Energy Group Research Director Alex
Munton.
"The equity investment in Next Decade may have been
needed to help Rio Grande being financed, and that now the project the under
construction TotalEnergies may have decided that there is little value in
holding onto its position, as the overriding interest is in the offtake
volumes, which it was able to secure at low cost", Munton said. -Reuters
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