ADNOC’s XRG enters US LNG scene with stake in Lone Star State’s $18.4B project

September 25, 2025, by Melisa Cavcic

XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC), has wrapped up its acquisition of an interest in a liquefied natural gas (LNG) export project in Texas, United States (U.S.).

Rendering of the future LNG terminal; Source: NextDecade

Described as ADNOC’s first strategic U.S. investment, when it was announced in May 2024 as part of efforts to expand the firm’s lower-carbon LNG portfolio to meet growing gas demand, the company set out to obtain an 11.7% stake in Phase 1 of NextDecade Corporation’s Rio Grande LNG, thanks to an investment vehicle of Global Infrastructure Partners (GIP), part of BlackRock, with XRG purchasing part of GIP’s existing interest.

The UAE player’s subsidiary has now confirmed the completion of this acquisition, enabling it to become a partner in the first phase of the $18.4 billion Texas-based LNG project, covering trains 1-3 for which a final investment decision (FID) was made in July 2023. The construction officially began in October 2023.

Rio Grande LNG deals enable ADNOC to spread its low-carbon energy wings in US

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XRG highlighted: “This significant investment continues XRG’s global investment momentum, underscoring our ambition to become a global leader in gas and LNG. This move aims to help meet the increasing energy demands driven by industry, AI advancements, and economic growth.

“Together with Next Decade, BlackRock and the rest of the partners in Rio Grande LNG, we are looking forward to contributing to one of the world’s most ambitious LNG export projects as it proceeds from construction to operation, helping to meet growing global energy demand.”

**Adebayo Ogunlesi**, Chairman and CEO of Global Infrastructure Partners; **Dr. Sultan Al Jaber**, XRG’s Executive Chairman; **Larry Fink**, Chairman and CEO of BlackRock; and **Mohamed Al Aryani**, XRG’s President of International Gas; Source: XRG

With around 48 million tons per annum (mtpa) of potential liquefaction capacity currently under construction or in development, NextDecade is developing and constructing the Rio Grande LNG natural gas liquefaction and export facility through its subsidiaries.

Earlier this month, the company disclosed a positive FID for Train 4, expanding the U.S. project under development near Brownsville and issued a full notice to proceed to Bechtel Energy under the lump-sum, turnkey engineering, procurement, and construction (EPC) contract for the fourth train and related infrastructure.

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Following the completion of Train 5 commercialization, with a total of 4.5 mtpa of 20-year LNG SPAs with JERA, EQT Corporation, and ConocoPhillips, the U.S. firm extended the pricing validity period with Bechtel in September 2025 through November 15, 2025, to accommodate the current expected timeline for achieving a positive FID for the train.

XRG is focused on its low-carbon agenda and five-year business plan to establish an integrated gas and LNG business with 20–25 mtpa capacity by 2035; thus, it is dedicated to pursuing value-accretive opportunities across gas, LNG, chemicals, and energy solutions.