Acquires a 7.6% stake in Trains 4 and 5 of Rio Grande LNG project
Abu Dhabi’s XRG recently announced that it will increase its stake in Rio Grande LNG, deepening its exposure to one of the world’s largest LNG export facilities, located in the Port of Brownsville, Texas.
The transaction further strengthens XRG’s position in the global LNG market and marks an important milestone in the execution of its international gas strategy.
XRG will increase its overall participation in Rio Grande by acquiring additional 7.6% equity interests in Trains 4 and 5 of the Rio Grande LNG project from an acquisition vehicle of Global Infrastructure Partners (GIP), a part of BlackRock.
Offtake agreement
The transaction builds on XRG’s initial investment in Rio Grande LNG, through which the company acquired an indirect 11.7% stake in Phase 1 of the project (Trains 1–3), also through GIP. Additionally, as part of that transaction, ADNOC Trading entered into a 20-year LNG offtake agreement for 1.9 MTPA from Train 4.
“Expanding our investment in Rio Grande LNG reinforces XRG’s commitment to delivering on our global gas strategy. The project continues to progress well, with strong construction momentum marking steady steps toward bringing new LNG capacity online,” explained Mohamed Al Aryani, President, XRG’s International Gas business.
Trains 4 and 5 each have an expected LNG production capacity of approximately 6 MTPA. Each train has secured long-term LNG offtake agreements with high-credit-quality offtakers, providing strong long-term commercial underpinning for the project, a press statement concluded.
