XRG Expands Stake in Texas-Based Rio Grande LNG Project
XRG plans to raise its ownership in the Rio Grande LNG export project by acquiring a 7.6% stake in Trains 4 and 5, expanding its exposure to U.S. LNG infrastructure and long-term offtake capacity in Texas.
(P&GJ) — XRG plans to increase its ownership in the Rio Grande LNG export project by acquiring an additional 7.6% equity stake in Trains 4 and 5 at the facility near the Port of Brownsville, Texas, expanding its footprint in the U.S. LNG market.
The new investment builds on XRG’s existing indirect 11.7% interest in Phase 1 of the project, which includes Trains 1, 2 and 3. The additional stake will be acquired from an investment vehicle of Global Infrastructure Partners, a subsidiary of BlackRock.
As part of XRG’s earlier Phase 1 transaction, ADNOC Trading also secured a 20-year LNG offtake agreement for 1.9 million tonnes per annum from Train 4, providing long-term commercial support for the expansion.
“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,” said Mohamed Al Aryani, President of XRG’s International Gas business. “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,” he added.
Each of Trains 4 and 5 is expected to have LNG production capacity of about 6 million tonnes per year and is backed by long-term offtake agreements with investment-grade counterparties, according to the company.
The Rio Grande LNG project is expected to support more than 5,000 construction jobs and about 700 permanent positions in the Rio Grande Valley. Financial terms of the transaction were not disclosed, and the deal remains subject to regulatory approvals and other customary closing conditions.