Brownsville: XRG today announced it has closed its acquisition of an 11.7 percent equity stake in Phase 1 (Trains 1-3) of the Rio Grande LNG project in Brownsville, Texas, United States. The investment is a strategic joint venture between XRG and Global Infrastructure Partners (GIP), a part of BlackRock.
According to Emirates News Agency, Rio Grande LNG is one of the most ambitious LNG export infrastructure projects in the US, with approximately 48 million tonnes per annum (mtpa) of potential liquefaction capacity currently under construction or in development. This highlights the role of the US as a major energy exporter. Construction of Trains 1-3 continues to progress smoothly, while the Final Investment Decision (FID) for Train 4 was achieved in early September.
Mohamed Al Aryani, XRG International Gas President, emphasized that with LNG demand projected to grow by 60 percent by 2050, the investment in Rio Grande LNG aligns with XRG's strategy to build a significant global gas and LNG business. This is aimed at meeting structural demand from industry, AI, and broader economic growth. He stated, "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."
The transaction, initially announced in May 2024, marks the company's first gas infrastructure investment in the US, reflecting XRG's long-term investment plans in the country. The project is expected to employ over 5,000 construction and trade workers at its peak and create 350-400 long-term operational jobs once in service. XRG acquired a portion of GIP's existing stake through an investment vehicle of GIP.
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.