ADNOC Acquires Equity Stake, Signs LNG Offtake Agreement

The Abu Dhabi National Oil Company (ADNOC) completed the acquisition of an 11.7% stake in Phase 1—Trains 1, 2, and 3—of NextDecade’s RGLNG export project in Texas. In addition, the partners established a 20-year LNG offtake agreement from RGLNG Train 4. According to the agreement, which is subject to a final investment decision, ADNOC will receive 1.9 million tons per annum (mtpa) of LNG from the project on a free-on-board basis at a price indexed to Henry Hub.

"We are delighted to partner with NextDecade on this lower-carbon LNG project as it marks a significant milestone in ADNOC’s international growth strategy and provides us access to one of the world’s top LNG export markets,” said Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth. “As global energy demand continues to increase, ADNOC is growing our diversified energy portfolio to ensure a secure, reliable and responsible supply of energy to our customers while driving innovation and greater value.”

The acquisition of Phase 1 RGLNG equity has been achieved through an investment vehicle of Global Infrastructure Partners (GIP). ADNOC received a segment of GIP’s equity interest in Phase 1 and NextDecade will maintain its expected economic interest in this phase—it also retains interests in the Train 4 and Train 5 expansion capacity. ADNOC’s purchase of a Phase 1 equity stake in RGLNG also guarantees the option, granted by GIP, for potential equity participation in the planned Trains 4 and 5.

“We are excited to begin a multi-decade partnership with ADNOC, a major player in the global LNG market, and we look forward to having them as both a commercial offtaker and an equity partner in Rio Grande LNG,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “LNG from our facility will allow ADNOC to further increase its presence in the global LNG market, while also supplying global customers with more affordable and less carbon-intensive LNG.”

Rio Grande LNG; Image Credits: Bechtel

RGLNG is located on a 984-acre site near Brownsville, TX, and is expected to offer emissions reduction of more than 90% through a proposed carbon capture and storage (CCS) project. The CCS project is slated to capture and permanently sequester more than 5 mtpa of CO₂, which is equivalent to eliminating 1 million vehicles from the road on a yearly basis.

At the beginning of May 2024, Gecko Robotics and Al Masaood Energy entered a contract, at an estimated ceiling of $30 million, with ADNOC Gas to deploy Gecko’s wall-climbing robots and AI-powered data platform, Cantilever, across its sites. Integrating robotics and AI will facilitate predictive maintenance to increase efficiencies, decrease downtime and CO₂ emissions, and ensure HSE best practice for safety at ADNOC Gas locations. Gecko will also use a new model for predictive maintenance that allows for critical asset inspection while they are online.

These wall-climbing robots contain sensor payloads that build digital maps of critical assets. The Cantilever platform takes data from the robots and combines it with operational data to enable precision repairs and preventive maintenance. Companies and federal agencies utilize Gecko’s Cantilever to lengthen the lifespan and efficiency of critical infrastructure such as power plants, oil refineries, manufacturing facilities, and additional assets.