ADNOC acquires stake in Texas LNG project, inks long-term supply deal
Date
5/20/2024 8:59:00 AM
(MENAFN) The UAE's Abu Dhabi National Oil Company (ADNOC) announced on Monday the Acquisition of an 11.7 percent stake in the first phase of the Rio Grande LNG export project, which includes liquefaction units one, two, and three. This project, located in Texas, USA, is affiliated with NextDecade, a company listed on Nasdaq, and is expected to produce low-carbon liquefied natural gas (LNG).
As part of this strategic move, ADNOC and NextDecade have also entered into a 20-year agreement for the supply of LNG that will be produced from the project's fourth liquefaction unit. This acquisition, which ADNOC secured from GIB, a prominent global infrastructure investor, marks ADNOC's first major investment in the United States. It aligns with ADNOC's international growth strategy and reflects its commitment to expanding its LNG business portfolio to meet the increasing global demand for this crucial energy resource.
The agreement between ADNOC and NextDecade stipulates the annual supply of up to 1.9 million tons of LNG. The pricing for this supply will be determined according to the Henry Hub index for natural gas contracts, and the agreement will come into effect upon the approval of the final investment decision. This strategic investment underscores ADNOC's efforts to broaden its global footprint and enhance its capacity to provide low-carbon energy solutions.
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