Today's Edition
ABU DHABI (WAM)
XRG on Monday announced that it will increase its stake in Rio Grande LNG, deepening its exposure to one of the world’s largest LNG export facilities, located in the Port of Brownsville, Texas.
The transaction further strengthens XRG’s position in the global LNG market, and marks an important milestone in the execution of its international gas strategy.
XRG will increase its overall participation in Rio Grande by acquiring additional 7.6 percent equity interests in Trains 4 and 5 of the Rio Grande LNG project, from an acquisition vehicle of Global Infrastructure Partners (GIP), a part of BlackRock.
The transaction builds on XRG’s initial investment in Rio Grande LNG, through which the company acquired an indirect 11.7 percent stake in Phase 1 of the project (Trains 1–3), also through GIP.
Additionally, as part of that transaction, ADNOC Trading entered into a 20-year LNG offtake agreement for 1.9 MTPA from Train 4.
Mohamed Al Aryani, President of XRG’s International Gas business, said, “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 US LNG, we are strengthening a resilient, globally scaled gas platform while further deepening the UAE–US energy partnership—supporting energy security, jobs, and investment‑driven growth.”
Trains 4 and 5 each have an expected LNG production capacity of approximately 6 MTPA. Each train has secured long-term 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 US economy. The project provides more than 5,000 construction jobs, and approximately 700 long-term jobs in the Rio Grande Valley.
Financial details of the transaction are not disclosed. The transaction is subject to customary closing conditions, including regulatory approvals.
