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The UAE’s Abu Dhabi National Oil Co. (ADNOC) has acquired a 11.7% stake in the US-based NextDecade Corp.’s liquefied natural gas project in Texas, and has also agreed to offtake supply from the plant for 20 years.
The UAE's state energy major acquired the equity stake in the Phase 1 RGLNG through an investment vehicle of Global Infrastructure Partners (GIP).
ADNOC acquired a portion of GIP’s existing equity interest in Phase 1 while NextDecade retains its previously announced expected economic interest in Phase 1 as well as its interests in the Train 4 and Train 5 expansion capacity.
ADNOC did not disclose the value of the deal.
The 20-year LNG offtake agreement between ADNOC and NextDecade is for 1.9 million tons per annum (mtpa) from RGLNG Train 4, on a free on board (FOB) basis at a price indexed to Henry Hub, subject to a Final Investment Decision (FID).
The Phase 1 acquisition marks ADNOC’s first strategic investment in the US. Last week Reuters had reported that ADNOC is planning to establish a trading desk in the US as part of part of efforts to expand its global presence.
Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, said the deal marks a milestone in ADNOC’s international growth strategy and provides access to one of the world’s top LNG export markets.
(Reporting by Brinda Darasha; editing by Seban Scaria)