The investment will boost NextDecade's capital position as it develops the $15bn Rio Grande LNG project in Texas


Image: NextDecade will build the gas liquefaction and export facility. Photo: courtesy of LEEROY Agency from Pixabay.

Abu Dhabi-based sovereign investor Mubadala Investment has signed an agreement to acquire $50m of NextDecade’s common stock in a private placement.

Under the terms of the deal, NextDecade will issue the common stock to Mubadala at a price of $6.27 per share.

Mubadala said that the investment will strengthen NextDecade’s capital position as it continues to develop its Rio Grande LNG project, which is estimated to cost more than $15bn, in Texas, US.

NextDecade chairman and CEO Matt Schatzman said: “We are honored to welcome Mubadala, a leading global investor, as a shareholder in our company.

“Mubadala brings a valuable perspective on large-scale infrastructure investment and the growing role of LNG in the Middle East and other markets around the world. We look forward to a strong and lasting partnership.”

Rio Grande LNG plant to be commissioned in 2023

Planned to be commissioned in 2023, the 27mtpa Rio Grande LNG plant will comprise a total of six liquefaction trains each with a capacity of 4.5mtpa.

As part of the project, NextDecade will build the gas liquefaction and export facility, along with the 225km-long Rio Bravo feed gas pipeline.

Mubadala midstream executive director Khalifa Al Romaithi said: “We are pleased to make this investment in NextDecade. We strongly believe that the Rio Grande LNG project is optimally positioned to provide a highly competitive export route for the abundant gas resources of the Permian Basin and a compelling commercial proposition for LNG customers, Permian producers and NextDecade shareholders alike.

“Our investment also reflects Mubadala’s positive outlook on the global gas market and the growing role of gas in the energy transition.”

As per the terms of the agreement, Mubadala will have the right to contribute a certain capital amount in NextDecade’s Rio Grande LNG project, subject to final investment decision expected in the first quarter of 2020.

NextDecade’s subsidiary Rio Grande LNG will be responsible for the development and operation of the LNG export terminal. The feed gas pipeline will be built and operated by NextDecade’s another subsidiary Rio Bravo Pipeline.