Technip Energies Shares Surge on Report of Potential $10 Billion SpaceX Contract

Shares in Technip Energies (EPA:TE) surged more than 8% on Tuesday following a report from French media that the company is a leading contender for a potential $10 billion contract to build a rocket fuel facility for SpaceX.

The Potential Deal

According to French broadcaster BFM, Technip Energies is bidding on a tender from SpaceX to construct a fuel production site at the aerospace company's planned $100 billion base in Louisiana. The report, which cited unnamed sources, indicated that SpaceX CEO Elon Musk was expected to announce the winning supplier later on Tuesday.

BFM noted that Technip Energies is viewed as a strong candidate for the major contract. The firm's established expertise is a key factor, as it currently operates nearly a quarter of the world's liquefied natural gas (LNG) liquefaction capacity.

Strategic Fit and Project Scope

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Technip Energies' existing presence in the region further strengthens its position. The company is already expanding its operations in Louisiana, near land recently acquired by Musk for the new space facility, according to the BFM report.

The proposed fuel plant is intended to support thousands of flights for Starship, the rocket being developed for missions to the Moon and Mars. BFM reported that Technip Energies has proposed a design that would replicate its Commonwealth LNG project, a facility under construction in Louisiana with a capacity of 9.5 million tons of LNG per year. A key difference in the proposal for SpaceX is that its turbines would be powered by electricity rather than natural gas.

Ambitious Timeline

SpaceX is reportedly pushing for an aggressive construction schedule, targeting completion of the fuel facilities within 36 months. The BFM report added that construction on the broader Louisiana base is expected to begin next year, with the first Starship launch from the new site anticipated in 2029.