XRG expands stake in Rio Grande LNG with second investment

XRG now holds interests across all five trains currently under construction at the 30 MTPA Rio Grande LNG project. (Image: XRG)

XRG has expanded its investment in the Rio Grande LNG export project, acquiring an additional equity stake in Trains 4 and 5 and giving the Abu Dhabi-based energy investment company interests across all five liquefaction trains currently under construction at the Texas facility.

The transaction strengthens XRG’s position in the U.S. LNG sector as it continues to build a global natural gas portfolio centered on LNG, pipelines, storage and downstream market access. The company said North America remains a core investment region, citing abundant natural gas resources, growing power demand, industrial expansion and increasing electricity needs driven by artificial intelligence infrastructure.

XRG acquired an additional 7.6% equity interest in Trains 4 and 5 from an acquisition vehicle of Global Infrastructure Partners, part of BlackRock. The investment follows XRG’s earlier purchase of an indirect 11.7% stake in Phase 1 of the project, covering Trains 1, 2 and 3. The transaction received all required regulatory approvals, including clearance from the Committee on Foreign Investment in the United States.

Operated by NextDecade, Rio Grande LNG is one of the largest LNG export facilities under construction in the United States. The five-train project will have approximately 30 million metric tons per annum (MTPA) of liquefaction capacity. First gas is expected to enter the facility during the second half of 2026, with LNG production scheduled to begin in the first half of 2027.

For the compression and turbomachinery supply chain, continued investment in Rio Grande LNG underscores sustained confidence in U.S. LNG export infrastructure despite market volatility. Large-scale LNG projects require significant deployments of gas turbines, refrigeration compressors, electric motors, control systems and long-term aftermarket services throughout construction and operation.

Trains 4 and 5 are expected to add approximately 12 MTPA of LNG production capacity and have secured long-term offtake agreements with investment-grade customers. As part of its initial investment, XRG affiliate ADNOC Trading also signed a 20-year agreement to purchase 1.9 MTPA of LNG from Train 4, providing additional commercial support for the expansion.

XRG said the acquisition aligns with its strategy of investing across the natural gas value chain, from upstream production and processing through pipelines, LNG, regasification and industrial markets, while reinforcing its long-term commitment to U.S. LNG development.