UAE's ADNOC has made its first investment in the United States by acquiring a share in NextDecade Corp.'s natural gas export project in Texas, Bloomberg reported. This move secures ADNOC a 20-year gas supply from the facility. Abu Dhabi National Oil Co. (ADNOC) will hold an 11.7 per cent stake in phase 1 of the Rio Grande LNG project, according to a statement released on Monday. Additionally, the agreement guarantees ADNOC an annual supply of 1.9 million tons of liquefied natural gas (LNG) from Train 4 of the project. ADNOC's global asset acquisitions reflect its ambition to expand its presence and enter new markets. The company is currently in talks to acquire a chemical company in Europe and is exploring merging two units to form a $30 billion petrochemical powerhouse. This strategic initiative aligns with Saudi Aramco's efforts to expand globally, exemplified by its recent agreement to acquire an LNG firm in Australia. Musabbeh Al Kaabi, Adnoc's Executive Director for International Growth, sees this transaction as a significant milestone in the company's international expansion strategy. He emphasised ADNOC's commitment to strengthening its diversified energy portfolio to ensure a reliable, sustainable, and responsible energy supply amidst increasing global energy demand. ADNOC's stake in the initial phase of the Rio Grande project provides access to Trains 1 to 3, key components of the venture. NextDecade expects to make a final investment decision on constructing Train 4 in the latter half of 2024. Abu Dhabi, the capital of the UAE, is leveraging its oil wealth to elevate ADNOC into a major global energy player. Alongside other Middle Eastern countries like Saudi Arabia and Qatar, the UAE is investing significantly in gas projects, recognizing gas as a vital transitional fuel in the changing energy landscape.
