Published: May 28, 2024 |

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DNOC has acquired a 11.7 percent stake in phase 1 (trains 1-3) of NextDecade’s Rio Grande LNG (RGLNG). The Rio Grande LNG is a leading liquefied natural gas (LNG) export project located in Texas, which 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 (mtpa) from RGLNG train 4, on a free on board (FOB) basis at a price indexed to Henry Hub, subject to a final investment decision (FID).

“We are delighted to partner with NextDecade on this world-class lower-carbon LNG project as it marks a significant milestone in ADNOC’s international growth strategy and provides us access to one of the world’s top LNG export markets. As global energy demand continues to increase, ADNOC is growing our diversified energy portfolio to ensure a secure, reliable, and responsible supply of energy to our customers while driving innovation and greater value,” said Musabbeh Al Kaabi, ADNOC executive director for Low Carbon Solutions and International Growth.

Rio Grande LNG, situated on a 984-acre site near Brownsville, Texas, is the first US LNG project offering expected emissions reduction of more than 90 percent 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.

“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,” said Matt Schatzman, NextDecade’s chairman and chief executive officer.

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.

ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification.

NextDecade is an energy company accelerating the path to a net-zero future. Leading innovation in more sustainable LNG and carbon capture solutions, NextDecade is committed to providing the world access to cleaner energy. Through its subsidiaries Rio Grande LNG and NEXT Carbon Solutions, they are developing a 27 MTPA LNG export facility in South Texas along with one of the largest carbon capture and storage projects in North America. The company is also working with third-party customers around the world to deploy proprietary processes to lower the cost of carbon capture and storage and reduce CO2 emissions at their industrial-scale facilities.

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