Abu Dhabi's Mubadala Invests in US LNG Developer
Abu Dhabi-based Mubadala Investment Company has reached an agreement to purchase $50mn of Nasdaq-listed LNG developer NextDecade Corporation’s common stock in a private placement, the two companies said October 24.
“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,” NextDecade CEO Matt Schatzman said.
NextDecade will issue the common stock to Mubadala at a price of $6.27/share. As part of its investment in NextDecade, 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 NextDecade’s Rio Grande LNG project.
“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,” Khalifa Al Romaithi, Mubadala’s executive director for midstream, said.
In addition to the proposed 27mn metric tons/yr Rio Grande LNG export facility in Brownsville, Texas, NextDecade’s portfolio also includes the 4.5bn ft3/d Rio Bravo pipeline that would transport natural gas from the Agua Dulce area to Rio Grande LNG.