Abu Dhabi-based XRG P. J. S. C. has finalised its acquisition of an 11.7 percent equity interest in Phase 1 of the Rio Grande LNG project in Brownsville, Texas, marking the company's first natural gas investment in the United States. The purchase was made through a joint-venture structure involving Global Infrastructure Partners, an investment vehicle affiliated with BlackRock.

Phase 1 of Rio Grande LNG is one of the most substantial liquefaction endeavours currently underway in the U. S., with a future potential capacity of about 48 million tonnes per annum. At the same time, the project has already secured a Final Investment Decision for Train 4, signalling confidence in longer-term expansion plans.

XRG, wholly owned by Abu Dhabi National Oil Company, has increasingly pivoted toward building a global gas and LNG platform. The acquisition aligns with that strategy and underscores XRG's commitment to international energy infrastructure markets beyond its traditional scope.

Mohamed Al Aryani, President of XRG International Gas, observed that global LNG demand is forecast to rise by 60 percent by 2050, and the Rio Grande deal helps position XRG among key global exporters. He also emphasised that the investment is consistent with a disciplined, long-term approach to asset development in gas and lower-carbon energy.

At peak construction, Rio Grande LNG is expected to employ over 5,000 workers, and once fully operational, the facility is projected to generate between 350 and 400 permanent jobs. The acquisition saw XRG purchase part of GIP's existing stake via a GIP investment vehicle, reflecting a collaborative transaction structure.

Parallel to the equity acquisition, ADNOC has committed to a 20-year offtake agreement for 1.9 mtpa of LNG from Train 4 of Rio Grande. This accords ADNOC and, by extension, XRG integrated exposure to both upstream equity and downstream supply in the LNG value chain.

XRG was launched late last year as a global investment vehicle for ADNOC's low-carbon energy and chemicals platforms, with an enterprise value exceeding US $80 billion. Since its inception, the company has pursued geographic diversification across the Caspian, Africa, and the Americas.

In the broader context of U. S. LNG exports, Rio Grande is among a handful of mega-scale projects under development that could reinforce America's status as a key supplier to Asia, Europe, and other markets. With Train 4 now sanctioned, the project advances into a new phase of financing, procurement, and execution.

The timing of XRG's entry coincides with intensifying competition in the global LNG sector, as utilities, gas exporters, and sovereign energy firms vie for positions in new liquefaction capacity. Some analysts view the stake as signalling confidence in long-term gas demand despite the broader push toward renewables and decarbonisation.

In financial markets, the transaction is viewed as a milestone for ADNOC's ambition to grow outside the Middle East and reconfigure its portfolio toward global gas. For GIP and BlackRock, the partial divestment helps recycle capital in a sector where infrastructure assets often command premium valuations.

MENAFN12102025000152002308ID1110184189