ADNOC buys stake in Texas LNG project

ABU DHABI, May 20, 2024 – ADNOC has acquired an 11.7% stake in NextDecade Corporation’s Rio Grande LNG export facility in Texas, ADNOC announced on Monday.

ADNOC’s investment is in the project’s first phase, which involves the facility’s first three liquefaction trains. Through the investment, ADNOC also secures an option for equity participation in the project’s fourth and fifth trains.

Additionally, ADNOC announced that it had entered into a 20-year LNG offtake agreement with NextDecade for 1.9 million tpy from Rio Grande’s fourth train at a price indexed to Henry Hub. NextDecade is currently targeting a FID on the fourth train in the second half of 2024.

“We are excited to begin a multi-decade partnership with ADNOC, a major player in the global LNG market, and we look forward to having them as both a commercial offtaker and an equity partner in Rio Grande LNG,” said Matt Schatzman, chairman and CEO of NextDecade.

Rio Grande LNG, located near Brownsville, Texas, is the first LNG project in the US offering emissions reductions through CCS. It is expected the facility will capture and permanently store more than 5 million tpy of carbon dioxide.

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