ADNOC Unit XRG Buys Rio Grande LNG Trains 4 and 5 Equity from BlackRock's GIP

XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC), acquired a 7.6% equity interest in Trains 4 and 5 of the Rio Grande LNG project in Brownsville, Texas, according to World Oil on July 3. The company purchased the stake from Global Infrastructure Partners (GIP), a unit of BlackRock. Financial terms were not disclosed. XRG already held an 11.7% indirect stake in Phase 1 of the project, which covers Trains 1 through 3.

XRG Is ADNOC's $80 Billion International Investment Vehicle

ADNOC launched XRG in November 2024 as an $80 billion international investment vehicle, per ADNOC's corporate disclosures. XRG focuses on three business platforms: global chemicals, low-carbon energies, and international gas. It operates separately from ADNOC LNG, the Abu Dhabi company that has produced liquefied natural gas at Das Island in the Persian Gulf since 1977. Mohamed Al Aryani, president of XRG's International Gas business, described Rio Grande LNG as "a textbook example of a world-class infrastructure project that helps connect advantaged U.S. gas supply with international demand."

Rio Grande LNG: 30 MMtpa Across Five Trains at Port of Brownsville

NextDecade Corporation operates Rio Grande LNG at the Port of Brownsville, Texas, with total planned liquefaction capacity of 30 million tonnes per annum across all five trains, per World Oil. Phase 1, covering Trains 1 through 3, is under construction with first gas expected in the second half of 2026. LNG exports are targeted to begin in the first half of 2027. Trains 4 and 5 are backed by long-term LNG sales agreements with investment-grade customers, per the World Oil report on the transaction.

XRG's Combined LNG Exposure Across All Five Trains Totals 3 MMtpa

Trains 4 and 5 are expected to add 12 million tonnes per annum when complete, per World Oil, which puts Phase 1 capacity at 18 million tonnes per annum across Trains 1 through 3. XRG's 11.7% indirect stake in Phase 1 translates to 2.1 million tonnes per annum of LNG exposure. Its new 7.6% equity in Trains 4 and 5 represents an additional 0.9 million tonnes per annum. XRG's combined Rio Grande LNG position across all five trains totals 3 million tonnes per annum, calculated by applying the stated stake percentages to the reported capacity figures for each phase.

Two Separate Brownsville LNG Projects Are Now Advancing in Parallel

Rio Grande LNG shares its port location with a second, separate LNG export project. The 4 million tonnes per annum Glenfarne Texas LNG terminal issued a limited notice to proceed to Kiewit in June, advancing toward its own final investment decision, as Oil Authority reported. The two terminals are distinct ventures with different operators, ownership structures, and capital sources. Their simultaneous progress reflects the scale of the U.S. Gulf Coast LNG export buildout advancing across Texas and Louisiana.

GIP's Exit Follows Typical Infrastructure Fund Capital Rotation

Global Infrastructure Partners was acquired by BlackRock in 2024, creating one of the world's largest infrastructure investment platforms. GIP and its successors routinely recycle capital as LNG projects advance from development-stage risk into construction and operations. ADNOC, through XRG, is taking the construction-phase risk in exchange for long-term equity in a 30 MMtpa U.S. LNG platform. Japan's LNG imports fell 7% in early July as utilities shifted toward cheaper coal, per OilPrice.com, but the long-term sales contracts backing Trains 4 and 5 underpin XRG's commercial rationale for the position.