May 20, 2024 - Business

Middle Eastern energy giant buys into Texas LNG project

Dan Primack,
Ben Geman

Animated illustration of two flames merging into one. — Illustration: Shoshana Gordon/Axios

ADNOC, the UAE's state-owned oil and gas giant, agreed to buy an 11.7% stake in NextDecade's liquefied natural gas project in Texas.

Why it matters: This is ADNOC's first deal in the U.S., and reflects the growing global ambitions of Middle Eastern energy giants. Don't be surprised if Saudi Aramco is next to make a stateside move.

Details: ADNOC is buying the position in the Rio Grande Project from private equity firm Global Infrastructure Partners, and it also signed a 20-year LNG offtake agreement with NextDecade.

The bottom line: The deal comes as the U.S. has emerged as world's largest LNG supplier, with more capacity slated to come online this decade despite the White House pause on new approvals.

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Middle Eastern energy giant buys into Texas LNG project

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