XRG today announced that it will increase its stake in Rio Grande LNG, increasing its exposure to one of the world’s largest LNG export facilities located at the Port of Brownsville, Texas.
This transaction further strengthens XRG’s position in the global LNG market and marks an important milestone in the implementation of its international gas strategy.
XRG plans to increase its overall participation in Rio Grande by acquiring an additional 7.6 percent equity interest in Trains 4 and 5 of the Rio Grande LNG project from the BlackRock company’s Global Infrastructure Partners (GIP) acquisition vehicle.
The transaction builds on XRG’s initial investment in Rio Grande LNG, whereby XRG indirectly acquired an 11.7% stake in the first phase (Trains 1-3) of the project. This is also done through GIP. Additionally, as part of that transaction, ADNOC Trading entered into a 20-year LNG offtake agreement at 1.9 MTPA from Train 4.
Mohamed Al Aryani, President of XRG’s International Gas Business, said: “The expansion of our investment in Rio Grande LNG recognizes the important role that LNG plays in delivering on our global gas strategy and providing reliable and flexible energy supplies to international markets. “The project remains on track, with strong construction momentum marking a steady step toward bringing new LNG production capacity online.”
“By increasing our presence in U.S. LNG, we strengthen a resilient global gas platform and further deepen the UAE-U.S. energy partnership, supporting energy security, jobs and investment-led growth.”
Trains 4 and 5 are each expected to have an LNG production capacity of approximately 6 MTPA. Each train has long-term LNG offtake agreements with highly creditworthy offtakers, providing a strong long-term commercial foundation for the project.
Rio Grande LNG is a major contributor to the U.S. economy. The project will bring more than 5,000 construction jobs and approximately 700 long-term jobs to the Rio Grande Valley.
Financial details of the transaction were not disclosed. The transaction is subject to customary closing conditions, including regulatory approvals.
