XRG increases its stake in Rio Grande LNG, strengthening its global gas strategy and expanding long-term exposure to U.S. LNG capacity.
XRG P.J.S.C. has announced plans to significantly increase its ownership stake in the Rio Grande LNG project, reinforcing its strategic positioning within the global liquefied natural gas (LNG) market. Located at the Port of Brownsville in Texas, Rio Grande LNG is among the largest LNG export developments worldwide, and the latest transaction marks another key step in XRG鈥檚 long-term international gas growth strategy.
Under the new agreement, XRG will acquire an additional 7.6% equity interest in Trains 4 and 5 of the Rio Grande LNG project. These interests are being purchased from an acquisition vehicle owned by Global Infrastructure Partners (GIP), which operates under BlackRock. This move expands XRG鈥檚 exposure beyond its existing holdings and reflects strong confidence in the project鈥檚 commercial fundamentals, construction progress, and long-term market relevance.
The transaction builds on XRG鈥檚 earlier investment in Rio Grande LNG, through which it secured an indirect 11.7% ownership stake in Phase 1 of the project, encompassing Trains 1, 2, and 3. That initial investment was also executed through GIP and represented XRG鈥檚 first major entry into the project. As part of the same broader arrangement, ADNOC Trading signed a 20-year LNG offtake agreement covering 1.9 million tonnes per annum (MTPA) from Train 4, further strengthening the project鈥檚 commercial profile and long-term revenue visibility.
Commenting on the expanded investment, Mohamed Al Aryani, President of XRG鈥檚 International Gas business, highlighted the strategic importance of the transaction. He noted that increasing XRG鈥檚 stake in Rio Grande LNG aligns directly with the company鈥檚 global gas ambitions and underscores its belief in LNG as a critical enabler of secure, reliable, and flexible energy supply for international markets. He also emphasized that the project continues to demonstrate strong construction momentum, signaling steady progress toward the delivery of new LNG export capacity.
Al Aryani further stated that expanding XRG鈥檚 footprint in U.S. LNG supports the development of a resilient and globally diversified gas platform. At the same time, it deepens the energy partnership between the United Arab Emirates and the United States, contributing to energy security, job creation, and sustained investment-driven economic growth across both regions.
Trains 4 and 5 of the Rio Grande LNG project are each designed with an expected production capacity of approximately 6 MTPA. Importantly, both trains are underpinned by long-term LNG offtake agreements with high-credit-quality buyers, providing strong commercial certainty and reducing exposure to market volatility over the life of the assets. This long-term contracting structure enhances the bankability and overall robustness of the project.
Beyond its strategic value to investors, Rio Grande LNG also represents a major economic contributor at the local and national levels in the United States. The project is expected to generate more than 5,000 jobs during the construction phase and support approximately 700 permanent positions in the Rio Grande Valley once operations commence, delivering lasting economic benefits to the region.
Financial terms of the transaction have not been disclosed. Completion remains subject to standard regulatory approvals and customary closing conditions.
