NextDecade Corp shares soared Wednesday after French energy giant TotalEnergies announced plans to buy 17.5% of the US liquefied natural gas (LNG) company for $219 million.
The move is part of a larger deal to help facilitate NextDecade's Rio Grande LNG export project in Texas. The LNG sector is growing in the US as companies look to fill a demand from Europe due to sanctions imposed on Russia.
NextDecade stock climbed 46% to $7.51 on Wednesday afternoon.
Shares of the company have risen about 40% so far in 2023, and the company had a market value of $772.4 million as of Tuesday's close.
Specifically, NextDecade said it has entered into framework agreements with Global Infrastructure Partners (GIP) and TotalEnergies to facilitate a final investment decision for its Rio Grande LNG project, which it expects to be confirmed in June.
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