- Acquisition of 11.7% equity stake in project’s Phase 1 marks XRG’s first gas investment in the United States
- Transaction advances XRG’s strategy to become a top-tier gas player to meet growing energy demand from industry, AI and economic growth
- XRG advances mandate to invest in quality projects that create long-term value for the company’s partners and shareholders
- Milestone reflects XRG’s long-term investment plans in the US
XRG today announced it has closed its acquisition of an 11.7% equity stake in Phase 1 (Trains 1-3) of the Rio Grande LNG project in Brownsville, Texas, United States (US). The investment is a strategic joint venture between XRG and Global Infrastructure Partners (GIP), a part of BlackRock.
Rio Grande LNG is one of the most ambitious LNG export infrastructure projects in the US with approximately 48 million tons per annum (mtpa) of potential liquefaction capacity currently under construction or in development, underscoring the role of the US as a major energy exporter. Construction of Trains 1-3 continues to progress smoothly, while Final Investment Decision (FID) for Train 4 was achieved in early September.
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.
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.
Source: XRG
