Abu Dhabi Investor Commits $50 Million to NextDecade
NextDecade and Mubadala Investment Co. have reached agreement for Mubadala to purchase $50 million of NextDecade’s common stock in a private placement. The capital buoys the development of the Rio Grande LNG export solution linking Permian Basin associated gas to the global LNG market.
NextDecade Corp. and Mubadala Investment Co., the Abu Dhabi-based sovereign investor, have reached agreement for Mubadala to purchase $50 million of NextDecade’s common stock in a private placement. NextDecade will issue the common stock to Mubadala at a price of $6.27 per share.
Mubadala’s investment strengthens NextDecade’s capital position as the company continues to develop its Rio Grande LNG project, the largest liquefied natural gas (LNG) export solution linking Permian Basin associated gas to the global LNG market.
“We are honored to welcome Mubadala, a leading global investor, as a shareholder in our company,” said Matt Schatzman, chairman and CEO of NextDecade. “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.”
Khalifa Al Romaithi, Mubadala’s executive director, midstream, 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 part of its investment, Mubadala will receive one seat on NextDecade’s board of directors. Mubadala will also have the right to contribute a certain amount of project-level capital upon the final investment decision of the Rio Grande LNG project, expected in the first quarter 2020.
NextDecade’s portfolio of LNG projects includes the 27 mtpa Rio Grande LNG export facility in Brownsville, Texas, and the 4.5 Bcf/D Rio Bravo Pipeline that would transport natural gas from the Agua Dulce area to Rio Grande LNG.Quick Facts
Rio Grande LNG
- Location and site: 984-acre site in the Port of Brownsville, Texas
- Capacity: 27 mtpa
- Storage: Four 180,000 m3 full-containment LNG tanks
- Marine facilities: Deepwater port access with supporting marine infrastructure
- Two marine jetties, berth pocket, turning basin
- Technology suppliers: ABB, Air Products, Baker Hughes
- Engineering, procurement, construction: Bechtel
Rio Bravo Pipeline
- Scope and distance: Twin 42-in. pipelines, 540,000-hp total compression, 137 miles
- Capacity: Each pipeline 2.25 Bcf/D (4.5 Bcf/D total)
- Scalable: Each pipeline supports three trains at Rio Grande LNG
- Interconnection: Eight existing pipelines (6.7 Bcf/D), three new pipelines (~ 4.7 Bcf/D) sanctioned to transport natural gas from Waha to Agua Dulce
- Supply area: Agua Dulce area poised to attract significant natural gas volumes from the Permian Basin and Eagle Ford Shale
- Designed to deliver gas from Agua Dulce to Rio Grande LNG