XRG Deepens Rio Grande LNG Investment in Texas
XRG has expanded its investment in NextDecade's Rio Grande LNG project by acquiring an additional stake in Trains 4 and 5, giving the company equity interests across all five LNG trains under construction in Texas.
(P&GJ) — XRG has completed the acquisition of an additional equity interest in Trains 4 and 5 of the Rio Grande LNG export project in Brownsville, Texas, increasing its ownership across all five trains currently under construction.
The additional 7.6% equity interest in Trains 4 and 5 was acquired from an investment vehicle of Global Infrastructure Partners (GIP), part of BlackRock. The transaction follows XRG's earlier investment in Phase 1, which included an indirect 11.7% stake in Trains 1, 2 and 3.
The transaction received all required regulatory approvals, including clearance from the Committee on Foreign Investment in the United States (CFIUS).
"Completing this transaction marks an important step in the execution of XRG's global gas strategy and our ambition to build a resilient, integrated and globally scaled platform across gas, LNG and chemicals," said Mohamed Al Aryani, president of XRG's International Gas business.
"The world needs reliable energy resources as well as export infrastructure, pipelines, storage and market access required to move energy where it is needed. Rio Grande LNG is a textbook example of a world-class infrastructure project that helps connect advantaged U.S. gas supply with international demand."
Operated by NextDecade, Rio Grande LNG currently has approximately 30 million metric tons per annum (MMtpy) of liquefaction capacity under construction across five trains.
NextDecade Chairman and CEO Matt Schatzman said the expanded investment reinforces confidence in the project.
"We are pleased to have XRG as a strategic investor across all five trains at Rio Grande LNG. This investment reflects strong confidence in the quality and scale of Rio Grande LNG and reinforces our ability to deliver a world-class LNG facility."
Together, Trains 4 and 5 are expected to provide approximately 12 MMtpy of LNG production capacity. XRG said both trains have secured long-term LNG offtake agreements with investment-grade customers.
As part of its earlier investment, ADNOC Trading also signed a 20-year agreement to purchase 1.9 MMtpy of LNG from Train 4.
According to XRG, Rio Grande LNG is expected to create approximately 7,500 construction jobs at peak activity and around 700 permanent jobs once the facility enters operation. First gas is expected in the second half of 2026, with LNG production anticipated to begin during the first half of 2027.
The investment expands XRG's North American LNG portfolio as the company continues building its global gas business.