XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC), which entails Abu Dhabi Development Holding Company (ADQ) and global investment firm Carlyle, has augmented its interest in a liquefied natural gas (LNG) export project in Texas, United States (U.S.).
Following ADNOC’s first strategic U.S. investment in May 2024 as part of efforts to boost its lower-carbon LNG portfolio to meet growing gas demand, the company secured an 11.7% stake in Phase 1 of NextDecade Corporation ’s Rio Grande LNG from an investment vehicle of Global Infrastructure Partners (GIP) , part of BlackRock, as XRG purchased part of GIP’s existing interest.
The UAE giant has now taken steps to acquire a 7.6% stake in trains 4 and 5 of the same project from an acquisition vehicle of Global Infrastructure Partners, building on the initial 11.7% stake in Phase 1 of this development in the Port of Brownsville, covering trains 1, 2, and 3.
This move is perceived to further strengthen XRG’s position in the global LNG market, marking an important milestone in the execution of its international gas strategy. As part of the transaction, ADNOC Trading entered into a 20-year LNG offtake agreement for 1.9 million tons per annum (mtpa) from Train 4.
Mohamed Al Aryani , President of XRG’s International Gas business, commented: “Expanding our investment in Rio Grande LNG reinforces XRG’s commitment to delivering on our global gas strategy and advancing the vital role LNG plays in providing reliable and flexible energy supply to international markets.
“The project continues to progress well, with strong construction momentum marking steady steps toward bringing new LNG capacity online. By growing our presence in U.S. LNG, we are strengthening a resilient, globally scaled gas platform while further deepening the UAE–U.S. energy partnership—supporting energy security, jobs, and investment‑driven growth.”
While financial details of the transaction are not disclosed, the acquisition is subject to customary closing conditions, including regulatory approvals. Currently, the development of the five trains is estimated at $31.8 billion. The LNG plant has a potential liquefaction capacity of 48 mtpa, with enough space for up to ten trains.
With an expected LNG production capacity of approximately 6 mtpa, trains 4 and 5 each have LNG offtake agreements with high-credit quality offtakers, providing strong long-term commercial underpinning for the project.
“Rio Grande LNG is a significant contributor to the U.S. economy. The project provides more than 5,000 construction jobs and approximately 700 long-term jobs in the Rio Grande Valley,” emphasized XRG.