XRG Expands Stake in Rio Grande LNG Project, Now Involved in All Trains

The Facts -

XRG Bolsters Stake in Texas LNG Project, Strengthening Global Gas Portfolio

XRG has recently amplified its involvement in the Rio Grande LNG project by acquiring more shares in Trains 4 and 5, thus ensuring its participation in all five LNG trains currently being constructed in Texas.

The energy company, XRG, has successfully acquired a greater equity interest in the Rio Grande LNG export project situated in Brownsville, Texas. By securing additional shares in Trains 4 and 5, XRG has broadened its control across the five LNG trains under development.

This new acquisition involves a 7.6% stake in Trains 4 and 5, which was purchased from a Global Infrastructure Partners (GIP) investment vehicle tied to BlackRock. This follows XRG's prior investment, which included an 11.7% indirect interest in Trains 1, 2, and 3.

The acquisition has received all the necessary regulatory clearances, including approval from the Committee on Foreign Investment in the United States (CFIUS).

"Completing this transaction marks an important step in the execution of XRG's global gas strategy and our ambition to build a resilient, integrated and globally scaled platform across gas, LNG and chemicals," stated Mohamed Al Aryani, president of XRG's International Gas business.

"The world needs reliable energy resources as well as export infrastructure, pipelines, storage, and market access required to move energy where it is needed. Rio Grande LNG is a textbook example of a world-class infrastructure project that helps connect advantaged U.S. gas supply with international demand."

The Rio Grande LNG project, managed by NextDecade, is currently under construction and will feature around 30 million metric tons per annum (MMtpy) of liquefaction capacity spread across five trains.

Matt Schatzman, Chairman and CEO of NextDecade, expressed that XRG's increased investment supports the project's credibility.

"We are pleased to have XRG as a strategic investor across all five trains at Rio Grande LNG. This investment reflects strong confidence in the quality and scale of Rio Grande LNG and reinforces our ability to deliver a world-class LNG facility."

Trains 4 and 5 alone are anticipated to contribute approximately 12 MMtpy of LNG production capacity. XRG has already secured long-term LNG offtake agreements with high-credit customers for these trains.

ADNOC Trading, as part of its earlier investment, has committed to purchasing 1.9 MMtpy of LNG from Train 4 under a 20-year agreement.

According to XRG, the Rio Grande LNG project is projected to generate about 7,500 jobs during the peak construction phase and provide around 700 permanent positions once operational. The first gas is expected by the latter half of 2026, with LNG production commencing in the first half of 2027.

Expanding XRG's North American LNG portfolio, this investment aligns with the company's ongoing efforts to develop its global gas business.

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