Mubadala makes investment in LNG project developer NextDecade

Abu Dhabi-based sovereign investor Mubadala has signed an agreement to purchase $50m of liquefied natural gas (LNG) development company NextDecade’s common stock via a private placement.

The issuance of NextDecade’s common stock to Mubadala will be priced at $6.27 a share.

Mubadala’s investment will further strengthen NextDecade’s position as the company continues to develop its Rio Grande LNG project.

The LNG export project links Permian Basin associated gas to the global LNG market.

NextDecade chairman and CEO Matt Schatzman said: “We are honoured 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.”

The company is now set to serve as one of NextDecade’s board of directors.

The investment company will also have the right to contribute a certain amount of project-level capital upon the final investment decision (FID) of NextDecade’s Rio Grande project.

Mubadala Midstream executive director Khalifa Al Romaithi said: “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.”

In July 2017, NextDecade signed a memorandum of understanding (MoU) with the Port of Cork to develop a new floating storage and regasification unit (FSRU) and associated LNG import terminal infrastructure in Ireland.