May 20, 2024 [Reuters]- Abu Dhabi National Oil Company (ADNOC) has acquired an 11.7% stake in NextDecade’s Rio Grande liquefied natural gas export facility in Texas and entered a supply agreement, marking the UAE energy giant’s first large investment in the United States.

ADNOC said on Monday it had acquired the stake in phase 1 of the project, which includes the first three liquefaction trains, and agreed to a 20-year supply agreement for the fourth train, which is subject to a final investment decision (FID).

With demand for the chilled fuel expected to grow 50% by 2030, Saudi Aramco and ADNOC are tapping opportunities in the United States, which has become the world’s biggest exporter of LNG as it sends record volumes to Europe.

The United States became the world’s biggest LNG supplier in 2023, ahead of Australia and Qatar, as supply disruptions and sanctions linked to Russia’s war in Ukraine created more demand for exports and boosted prices.

NextDecade is planning to start construction of the fourth liquefaction train in the second half of 2024 after the FID.

Its Rio Grande LNG export plant has been in development for several years, suffering repeated delays, and its phase 1 is now expected to reach completion latest by early 2029 at an expected cost of about $18 billion.

The total proposed project includes five 5.4-MTPA liquefaction trains capable of turning about 3.6 billion cubic feet per day of natural gas.

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