ADNOC has made an important announcement regarding its investment in NextDecade Corporation’s Rio Grande LNG project in Texas, United States. ADNOC has acquired an 11.7 percent stake in Phase 1 of the project, which includes Trains 1-3. This investment aligns with ADNOC’s international growth strategy and its focus on expanding its lower-carbon LNG portfolio.
The acquisition was made through Global Infrastructure Partners (GIP), a renowned infrastructure investor. NextDecade will retain its expected economic interest in Phase 1, as well as its interests in Train 4 and Train 5 expansion capacity.
In addition to the stake acquisition, ADNOC and NextDecade have entered into a 20-year LNG offtake agreement for Train 4 of the Rio Grande LNG project. This agreement is for an annual volume of 1.9 million tonnes of LNG on a free on board (FOB) basis, with pricing indexed to Henry Hub, pending a Final Investment Decision (FID).
ADNOC’s Executive Director for Low Carbon Solutions and International Growth, Musabbeh Al Kaabi, expressed enthusiasm about the partnership and highlighted the importance of expanding ADNOC’s energy portfolio to meet global demand while prioritising sustainability. The Rio Grande LNG project, which covers a significant 984-acre site near Brownsville, Texas, stands out for its innovative carbon capture and storage (CCS) project. It is expected to achieve emissions reduction of over 90 percent and permanently store more than 5 million metric tonnes of carbon dioxide (CO2) annually.
NextDecade’s Chairman and CEO, Matt Schatzman, expressed excitement about the partnership with ADNOC, emphasising the role of LNG from their facility in increasing ADNOC’s global presence while providing affordable and environmentally friendly fuel options. ADNOC’s equity stake in Phase 1 also grants it the option for future equity participation in Trains 4 and 5 of the project. NextDecade aims to reach a Final Investment Decision for Train 4 in the latter half of 2024, subject to various conditions such as finalising contracts and securing adequate financing.
For more information visit www.investors.next-decade.com
