NextDecade signs offtake and equity agreement with Abu Dhabi’s ADNOC

NextDecade and ADNOC, a diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi, announced the acquisition by ADNOC of a 11.7% stake in Phase 1 of NextDecade’s Rio Grande LNG, a liquefied natural gas export project located in Texas, expected to produce a less carbon-intensive LNG. Additionally, ADNOC and NextDecade have entered into a 20-year LNG offtake agreement from RGLNG Train 4. The Phase 1 RGLNG equity stake has been acquired through an investment vehicle of Global Infrastructure Partners, an infrastructure investor. ADNOC acquired a portion of GIP’s existing equity interest in Phase 1 while NextDecade retains its expected economic interest in Phase 1 as well as its interests in the Train 4 and Train 5 expansion capacity. The Phase 1 acquisition marks ADNOC’s first strategic investment in the US. The 20-year LNG offtake agreement between ADNOC and NextDecade is for 1.9 million tons per annum from RGLNG Train 4, on FOB basis at a price indexed to Henry Hub, subject to a Final Investment Decision. Rio Grande LNG, situated on a 984-acre site near Brownsville, Texas, is the first US LNG project offering expected emissions reduction of more than 90% through its proposed carbon capture and storage project, expected to capture and permanently store more than 5 million metric tons per annum of CO2. NextDecade is currently targeting FID on Train 4 at the Rio Grande LNG Facility in the second half of 2024.