Abu Dhabi, UAE – XRG P.J.S.C. (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.
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.
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.
About XRG:
XRG is a transformative international energy investment company, focused on natural gas, chemicals and scalable energy solutions to help power AI and industry globally. Headquartered in Abu Dhabi and wholly owned by ADNOC, XRG’s portfolio includes operating and non-operating interests in industry-leading companies that are meeting the rapidly increasing global demand for energy and the chemicals that are essential to enable sustainable economic growth.