In particular, ADNOC acquired an 11.7% stake in Phase 1 (Trains 1-3) of Rio Grande LNG, which is a liquefied natural gas (LNG) export project located in Texas and expected to produce less carbon-intensive LNG.

This marks ADNOC’s first strategic investment in the U.S. to expand its lower-carbon LNG portfolio to meet growing gas demand.

Apart from this, ADNOC and NextDecade penned a 20-year LNG offtake agreement for 1.9 mtpa from Rio Grande LNG Train 4, on a free on board (FOB) basis at a price indexed to Henry Hub, subject to a Final Investment Decision (FID).

Notably, the Phase 1 Grande LNG’s equity stake has been acquired through an investment vehicle of Global Infrastructure Partners (GIP) and ADNOC acquired a part of GIP’s existing equity interest in Phase 1.

On the other hand, NextDecade retained its previously announced expected economic interest in Phase 1 along with its interests in the Train 4 and Train 5 expansion capacity.

ADNOC’s acquisition of an equity stake in Phase 1 (Trains 1-3) of Rio Grande LNG also secures the option from GIP for equity participation in the future Trains 4 and 5 of the project.

NextDecade is also currently targeting FID on Train 4 at the Rio Grande LNG Facility in the second half of 2024.

Investors can gain exposure to the stock via Listed Funds Trust Roundhill Alerian LNG ETF (NYSE:LNGG) and Exchange Traded Concepts Trust Range Global LNG Ecosystem Index ETF (NYSE:LNGZ).

Price Action: NEXT shares are up 14.8% at $8.01 at the last check Monday.

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