ADNOC's XRG expands stake in Texas Rio Grande LNG project
Abu Dhabi National Oil Company's investment arm XRG has acquired an additional 7.6% stake in the Rio Grande LNG project, deepening Gulf state access to US export capacity ahead of a projected market doubling by 2031.
XRG, wholly owned by Abu Dhabi National Oil Company (ADNOC), has acquired a 7.6% equity interest in Trains 4 and 5 of the Rio Grande LNG project in Texas. The stake was purchased from a Global Infrastructure Partners vehicle, now part of BlackRock. This builds on XRG's initial investment, which secured an 11.7% indirect stake in the project's first phase covering Trains 1, 2, and 3.
The Rio Grande facility at the Port of Brownsville represents roughly 30 million tonnes per annum (mtpa) of liquefaction capacity under construction across its five trains. Trains 4 and 5 will account for about 12 mtpa of that total. Project operators expect production to commence in the first half of 2027.
Alongside the equity purchase, ADNOC Trading has secured a 20-year offtake agreement for 1.9 mtpa from Train 4. This guarantees the Abu Dhabi firm physical volumes from a project situated in the world's dominant LNG exporting nation. The US currently boasts roughly 11.4 billion cubic feet per day of export capacity, a figure the Energy Information Administration projects will double by 2031.
XRG's expanded position mirrors a broader rush by Gulf state entities to secure US LNG supplies. Saudi Aramco recently signed a 20-year purchase agreement for 1.2 mtpa from NextDecade, tied to Train 4 of the same Rio Grande project. In a separate transaction, Aramco Trading Americas inked a 20-year deal for one million tonnes per annum from Caturus Energy’s Commonwealth LNG facility in Louisiana. Caturus is a midstream platform formed by US-based Kimmeridge and UAE state-owned Mubadala Investment Company.
This influx of Middle Eastern capital into US LNG infrastructure extends beyond direct equity and offtake deals. Major Western energy firms like ExxonMobil, Shell, BP, and TotalEnergies have recently expanded their presence in Iraq, where the government is planning its first LNG import terminals. US firm Excelerate has been invited to help develop these Iraqi facilities.
The financial movements underscore a deeper geopolitical realignment. A senior source connected to the European Commission’s security complex highlighted the strategic leverage embedded in US LNG dominance. “There’s an old phrase: ‘If you’ve got them by the balls, their hearts and minds will follow,’ and [U.S. President, Donald] Trump knows that controlling energy — including the world’s primary emergency energy source, LNG — is the way to do this,” the source said.
