Adnoc’s global energy investment arm XRG has closed the acquisition of an 11.7 per cent stake in Phase 1 (trains 1-3) of the Rio Grande LNG project in Texas as the company continues to boost its portfolio globally.
The deal, initially announced in 2024, marks XRG’s first natural gas investment in the US, the Abu Dhabi-based company said in a statement on Thursday.
The investment is a strategic joint venture between XRG and Global Infrastructure Partners, which is part of global asset manager BlackRock.
“As LNG demand is projected to grow by 60 per cent 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,” said XRG International Gas president Mohamed Al Aryani.
Rio Grande LNG is one of the most ambitious LNG export infrastructure projects in the US, with about 48 million tonnes per annum of potential liquefaction capacity currently under construction or in development.
XRG was launched last November as an international lower-carbon energy and chemicals investment company, with an enterprise value exceeding $80 billion. It is focused on scalable energy solutions to help support artificial intelligence and industry.
The company has been expanding its operations globally and plans to double its asset value over the next decade, capitalising on energy transition, AI advances and the rise of emerging economies.
Earlier this month, Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, led a meeting of the executive committee of XRG's parent company Adnoc's board and underlined the importance of its international expansion through XRG.
Adnoc moved its US investments to XRG in February this year. Besides its investment in Rio Grande LNG export facility, XRG also acquired a 35 per cent stake in an ExxonMobil hydrogen plant in Baytown, a city roughly 42km east of Houston.
XRG said on Thursday that the Rio Grande LNG project will employ more than 5,000 construction and trade workers at peak as well as 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, according to the statement.
Additionally, Adnoc entered into a 20-year LNG offtake agreement for 1.9 mtpa from Rio Grande LNG Train 4.
While the construction of Trains 1-3 continues to progress smoothly, Final Investment Decision for Train 4 was achieved in early September, XRG said.
