ADNOC acquires equity stake in Rio Grande LNG, signs offtake agreement

May 20, 2024
ADNOC acquired an 11.7% stake in Phase 1 of NextDecade’s RGLNG project from Global Infrastructure Partners.

ADNOC has acquired an 11.7% stake in Phase 1 (Trains 1-3) of NextDecade Corp.’s Rio Grande LNG (RGLNG) export project from Global Infrastructure Partners (GIP).  ADNOC also entered into a 20-year LNG offtake agreement with NextDecade from RGLNG Train 4.

The LNG offtake agreement is for 1.9 million tonnes/year (tpy) on a free on board (FOB) basis at a price indexed to Henry Hub, subject to a final investment decision (FID).

The 27-million tonne/year RGLNG plant, sited on a 984-acre site near Brownsville, Tex., is the first US LNG project offering expected emissions reduction of more than 90% through its proposed carbon capture and storage (CCS) project, which is expected to capture and permanently store more than 5 million tpy of CO2.

Phase 1 is expected to enter service in 2027, at a total total nameplate capacity of 17.61 million tpy (OGJ Online, Aug. 7, 2023; May 10, 2024). Phase 1 will also include two 180,000-cu m full containment LNG storage tanks, and two jetty berthing structures designed to load LNG carriers up to 216,000 cu m in capacity.

ADNOC’s equity stake acquisition also secures the option from GIP for equity participation in the future Trains 4 and 5 of the project.

NextDecade is currently targeting FID on Train 4 at the Rio Grande LNG plant in second-half 2024, subject to, among other things, finalizing and entering into an engineering, procurement, and construction contract, entering into appropriate commercial arrangements, and obtaining adequate financing to construct Train 4 and related infrastructure.