Abu Dhabi National Oil Company (ADNOC) announced on Monday the acquisition of an 11.7 percent stake in Phase 1 (Trains 1-3) of NextDecade‘s Rio Grande liquefied natural gas (RGLNG) export project, located in Texas, U.S. The project is expected to produce a less carbon-intensive LNG.
Moreover, ADNOC and NextDecade announced that they have entered into a 20-year LNG off-take agreement from RGLNG’s Train 4.
First major investment in the U.S.
This acquisition marks ADNOC’s first major investment in the U.S., underscoring its commitment to international growth and the expansion of its lower-carbon LNG portfolio.
ADNOC acquired the equity stake in Phase 1 RGLNG through an investment vehicle of Global Infrastructure Partners (GIP), one of the world’s premier infrastructure investors. Meanwhile, NextDecade retained its previous economic interest in Phase 1 as well as its interests in the Train 4 and Train 5 expansion capacity.
“As global energy demand continues to increase, ADNOC is growing our diversified energy portfolio to ensure a secure, reliable and responsible supply of energy to our customers while driving innovation and greater value,” stated Musabbeh Al Kaabi, ADNOC executive director for low carbon solutions and international growth.
As for the agreement, ADNOC and NextDecade signed the 20-year LNG off-take agreement for 1.9 million tons per annum of LNG from RGLNG Train 4.
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Rio Grande LNG
Rio Grande LNG is the first U.S. LNG project that offers low-emission LNG (reduction of more than 90 percent) through its innovative carbon capture and storage (CCS) project. The project expects the CCS to capture and permanently store more than 5 million metric tons per annum of carbon dioxide (CO2). That is equivalent to removing 1 million vehicles from the road annually.
“LNG from our facility will allow ADNOC to further increase its presence in the global LNG market, while also supplying global customers with more affordable and less carbon-intensive LNG,” stated Matt Schatzman, NextDecade’s chairman and CEO.
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