XRG increases equity position in Rio Grande LNG expansion trains

XRG will increase its equity position in the Rio Grande LNG export project in Texas, expanding its exposure to one of the world’s largest LNG developments and strengthening its North American gas portfolio. 

The Abu Dhabi–based company said it will acquire an additional 7.6% stake in Trains 4 and 5 of the Rio Grande LNG project at the Port of Brownsville. The equity interests are being purchased from an acquisition vehicle of Global Infrastructure Partners (GIP), part of BlackRock. Financial terms were not disclosed.

The transaction builds on XRG’s earlier investment in Rio Grande LNG, through which it holds an indirect 11.7% stake in Phase 1 of the project, covering Trains 1, 2 and 3. As part of that earlier deal, ADNOC Trading also secured a 20-year LNG offtake agreement for 1.9 million tonnes per year from Train 4.

Trains 4 and 5 are each expected to have LNG production capacity of approximately 6 million tonnes per year. Both trains have secured long-term offtake agreements with what the company described as high-credit-quality buyers, providing commercial support for the expansion phase.

XRG said the increased investment aligns with its strategy to build a globally scaled gas portfolio while expanding its footprint in the U.S. LNG sector. Construction at the Rio Grande LNG project is progressing, with the developer reporting strong momentum toward bringing new liquefaction capacity online.

“Expanding our investment in Rio Grande LNG reinforces XRG’s commitment to advancing its global gas strategy and the role of LNG in delivering reliable and flexible energy supply to international markets,” said Mohamed Al Aryani, president of XRG’s international gas business.

The Rio Grande LNG project is expected to play a significant role in U.S. LNG exports, supporting energy security while contributing to the local economy in the Rio Grande Valley. The project is currently employing more than 5,000 construction workers and is expected to support approximately 700 permanent jobs once operational.

The transaction remains subject to customary closing conditions, including regulatory approvals.

Top image: TotalEnergies