XRG closes acquisition stake in Phase 1 of Rio Grande LNG project

XRG has closed the acquisition of an 11.7% equity stake in Phase 1 (Trains 1-3) of the Rio Grande LNG project in Brownsville, Texas, marking its first gas investment in the United States. The deal was executed through an investment vehicle of Global Infrastructure Partners (GIP), part of BlackRock, by purchasing a portion of GIP's existing stake.  

Phase 1 of the project includes three liquefaction trains currently under construction. The Rio Grande LNG project is one of the most ambitious LNG export infrastructure developments in the US, with a potential total capacity of approximately 48 million tonnes per annum (mtpa). The projects underscores the role of the US as a major energy exporter. In addition, XRG’s parent company ADNOC entered into a 20-year LNG offtake agreement for 1.9 mtpa from Rio Grande LNG Train 4.  

A Final Investment Decision for Train 4 was recently achieved, further expanding the project. 

Mohamed Al Aryani, XRG International Gas President said: “As LNG demand is projected to grow by 60% by 2050, the investment in Rio Grande LNG advances XRG’s strategy to build a leading global gas and LNG business to meet structural demand from industry, AI, and broader economic growth.” 

“Our projects are designed to create shared value for all stakeholders, with a robust and geographically diverse international gas portfolio that spans across the Caspian, Africa, and the Americas; this global portfolio underscores our disciplined, long-term investment approach.” 

The transaction, initially announced in May 2024, is the company’s first gas infrastructure investment in the US, and reflects XRG’s long-term investment plans in the country. The project will employ over 5,000 construction and trade workers at peak and will create 350-400 long-term operational jobs once in service. 

The transaction was undertaken through an investment vehicle of GIP, with XRG acquiring a portion of GIP’s existing stake.