XRG expands stake in Rio Grande LNG export hub

Abu Dhabi–based energy investor XRG is deepening its engagement in one of the world’s largest liquefied natural gas export facilities, moving to acquire an additional equity interest in the Rio Grande LNG project in Texas, industry participants confirmed. The move extends XRG’s ownership beyond its earlier holding and marks a significant step in executing its global gas strategy, signalling confidence in long-term demand for LNG.

XRG said it will acquire a further 7.6 per cent stake in the export facility’s Phase 2 units — known as Trains 4 and 5 — through a purchase from an acquisition vehicle of Global Infrastructure Partners, a unit now associated with asset manager BlackRock. The transaction builds on XRG’s existing indirect 11.7 per cent exposure in Phase 1 of the project at the Port of Brownsville, adding scale to its presence in North American LNG infrastructure.

Mohamed Al Aryani, president of XRG’s international gas business, said expanding the company’s investment aligns with its broader drive to shape a globally scaled gas platform and highlights the pivotal role LNG plays in meeting worldwide energy needs. “By growing our presence in U. S. LNG, we are strengthening a resilient, globally scaled gas platform while further deepening the UAE–U. S. energy partnership,” he said, underlining energy security and flexible supply as strategic objectives.

The additional stake in Trains 4 and 5 considerably reinforces XRG’s footprint in the export project, where each train is expected to produce roughly six million tonnes per annum of LNG. Both trains have secured long-term offtake agreements with high-credit buyers, providing revenue visibility and commercial underpinning through sustained global demand.

Rio Grande LNG, led by U. S. developer NextDecade, is designed to connect abundant feed gas from major shale basins to international markets, with a potential total capacity exceeding 60 million tonnes per year when fully built. Phase 1 of the development began construction in 2023, with output anticipated by 2027, while Phase 2’s delivery horizon stretches into the early 2030s under current schedules.

The expanded ownership comes amid a broader geopolitical and investment backdrop that has seen deepening energy ties between the UAE and the United States. XRG’s increased stake follows a trend of Gulf energy firms boosting participation in U. S. LNG infrastructure, even as investor sentiment around global gas markets has been tested by supply, demand and regulatory shifts.

Analysts tracking the sector noted that acquisitions of long-term interests in large export hubs can serve multiple strategic purposes: securing access to cost-competitive feedstock, anchoring long-term supply contracts, and augmenting influence in pricing and distribution networks that serve Europe and Asia. The U. S. continues to be among the top sources of LNG exports globally, driven by its deep feedstock base and export infrastructure capacity.

Financial terms of XRG’s purchase have not been disclosed, and the transaction remains subject to regulatory approvals and customary closing conditions, according to statements. The deal’s completion is expected to come as construction activity across the project maintains momentum, with several thousand workers engaged on site and local economic benefits projected to grow as capacity comes online.

Industry participants said that expanding equity stakes in LNG export projects is part of a broader shift in energy portfolios among major national and sovereign investors, who are balancing commitments to traditional hydrocarbons with broader energy transition strategies. LNG, seen as a bridge fuel in many markets, remains central to that balancing act, particularly as buyers seek reliable and flexible supplies to support power generation and industrial demand.