XRG strengthened its presence in the U.S. liquefied natural gas (LNG) market after completing the acquisition of an additional stake in Trains 4 and 5 of the Rio Grande LNG project, located at the Port of Brownsville, Texas. The transaction increases its exposure to one of the largest LNG export facilities under development and strengthens its growth strategy in North America.
XRG Increases Its Stake in All Five Trains of the Project
With the closing of the transaction, XRG now holds equity interests in all five trains currently under construction at Rio Grande LNG, a project operated by NextDecade that ranks among the most significant liquefied natural gas export developments in the United States.
The company acquired an additional 7.6% in Trains 4 and 5 through an investment vehicle managed by Global Infrastructure Partners (GIP), a firm owned by BlackRock. This transaction complements the investment made previously in the first phase of the project, when it obtained an indirect stake of 11.7% in Trains 1, 2, and 3.
The transaction also received all corresponding regulatory approvals, including approval from the Committee on Foreign Investment in the United States (CFIUS).
The United States Remains a Strategic Market for XRG
The company considers that the United States offers a favorable environment to expand its global gas portfolio due to resource availability, energy infrastructure growth, reindustrialization, and increased demand associated with the development of artificial intelligence technologies.
The investment also reflects XRG’s confidence in the role that U.S. LNG will play in supporting international energy security and strengthening cooperation between the United States and the United Arab Emirates.
Mohamed Al Aryani, President of XRG’s International Gas Business, noted that the transaction represents a significant advancement within the company’s global strategy to build an integrated platform encompassing gas production, export infrastructure, storage, transportation, and access to international markets.
Rio Grande LNG Will Expand Export Capacity
Trains 4 and 5 will contribute a combined capacity of approximately 12 million metric tons per year (MTPA) and have long-term supply contracts signed with high-credit-quality buyers.
Together, the five trains of the complex will reach approximately 30 million tons per year of liquefaction capacity, while the start of commercial operations is scheduled for the first half of 2027. The first gas supply to the facility is expected during the second half of 2026.
As part of XRG’s initial investment, ADNOC Trading entered into a 20-year LNG sale and purchase agreement for 1.9 MTPA from Train 4, strengthening the project’s commercial foundation.
Economic Impact for Texas
Rio Grande LNG also represents a significant economic driver for South Texas. During the peak construction phase, the generation of approximately 7,500 jobs is estimated, while the permanent operation of the facility will create approximately 700 positions in the Rio Grande Valley.
Due to its scale and export capacity, the project will contribute to strengthening the U.S. liquefied natural gas supply chain and to supplying international markets with growing energy demand.
Source and photo: Xrg
