ADNOC joins NextDecade’s Rio Grande LNG project in first U.S. investment

(WO) – ADNOC has acquired an 11.7% stake in Phase 1 (Trains 1-3) of NextDecade Corporation’s Rio Grande LNG (RGLNG), a leading liquefied natural gas (LNG) export project located in Texas, United States. The project is expected to produce a less carbon-intensive LNG. Additionally, ADNOC and NextDecade have entered into a 20-year LNG offtake agreement from RGLNG Train 4.

The Phase 1 acquisition marks ADNOC’s first strategic investment in the U.S. as it continues to deliver on its international growth strategy and complements its efforts to expand its lower-carbon LNG portfolio to meet growing gas demand.

The 20-year LNG offtake agreement between ADNOC and NextDecade is for 1.9 million tons per annum (MMtpa) from RGLNG Train 4.

Rio Grande LNG, situated on a 984-acre site near Brownsville, Texas, is the first U.S. LNG project offering expected emissions reduction of more than 90% through its innovative proposed carbon capture and storage (CCS) project, which is expected to capture and permanently store more than 5 million metric tons per annum of carbon dioxide (CO2) – equivalent to removing 1 million vehicles from the road annually.

NextDecade is currently targeting FID on Train 4 at the Rio Grande LNG Facility in the second half of 2024, subject to, among other things, finalizing and entering into an Engineering, Procurement and Construction (EPC) contract, entering into appropriate commercial arrangements, and obtaining adequate financing to construct Train 4 and related infrastructure.

Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer, said, “We are excited to begin a multi-decade partnership with ADNOC, a major player in the global LNG market, and we look forward to having them as both a commercial offtaker and an equity partner in Rio Grande LNG. 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.”