The CEO of one of the world’s largest LNG companies warned that too much liquefaction capacity is under construction in the U.S., and could lead to a glut once it comes online.

TotalEnergies CEO Patrick Pouyanné made his remarks on Sept. 9 at the GasTech conference in Milan, Italy, according to a Reuters report.

“We are building too much,” Pouyanne said during a panel. “We are facing many U.S. projects. We will face oversupply … for some years if all these projects come onstream.”

North America currently has 136.1 million tonnes per annum (mtpa) of LNG under construction across 13 projects in the U.S. and Canada. More than 20 more proposed LNG terminals have yet to reach a final investment decision (FID).

The U.S. leads the world in LNG exports and set a monthly export record of 9.33 million tonnes in August, according to energy intelligence firm LSEG.

Pouyanne, however, remains bullish on his company’s current prospects.

TotalEnergies announced a 10-year LNG supply deal with Korean Gas (Kogas), the gas utility firm for South Korea. The deal did not name a specific export terminal. The LNG will instead come from TotalEnergies’ worldwide portfolio.

Rio Grande announcement

The CEO also said its Rio Grande LNG project in Brownsville, Texas, would announce an FID for its fourth train by the end of the day on Sept. 9. TotalEnergies is a partner on the project, which is operated by NextDecade.

NextDecade had previously announced that Train 4 would reach FID by Sept. 15. The company went ahead and released a press release late in the afternoon on Sept. 9.

NextDecade gave notice for contracting firm Bechtel to fully proceed with the $6.7 billion project, according to the announcement. The project is funded by a $3.85 billion term loan facility at Rio Grande LNG Train 4, $1.13 billion in equity commitments from NextDecade  and $1.70 billion in equity commitments from partners Global Infrastructure Partners, a part of BlackRock, GIC, Mubadala Investment Co. and TotalEnergies.

“We are pleased to announce today that we have made a positive FID on Train 4 and issued full notice to proceed to Bechtel,” said Matt Schatzman, NextDecade’s chairman and CEO.

On Sept. 8, NextDecade announced a 1-mtpa sales and purchase agreement with ConocoPhillips for the facility’s fifth train.

The deal finished the commercialization process for Train 5, NextDecade said.