UAE Oil Giant Buys Into NextDecade LNG in First US Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2024
0mins
Source: Bloomberg
- Adnoc's Acquisition in the US: Adnoc, the UAE's main oil company, acquired an 11.7% stake in a natural gas export project in Texas, marking its first US acquisition and securing a 20-year supply deal.
- Expansion Plans for NextDecade: Houston-based NextDecade, the developer of the Rio Grande LNG project, aims to secure sales contracts for expansion beyond phase 1 with the help of Adnoc's investment.
- Global Expansion Strategy: Adnoc's move into the US is part of its global expansion strategy announced in November 2022, focusing on key sectors like low carbon solutions, renewables, natural gas, and chemicals.
- Energy Transition Focus: The UAE, including Abu Dhabi, is investing in gas as a bridge fuel in the energy transition, aiming for self-sufficiency by 2030 and exploring fields from Australia to the US.
- Stakeholders and Future Plans: French energy company Total and Mubadala, an Abu Dhabi investment fund, are shareholders in NextDecade, which plans to decide on building Train 4 in the second half of 2024 with Adnoc's potential equity stake.
Analyst Views on NEXT
Wall Street analysts forecast NEXT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NEXT is 7.00 USD with a low forecast of 7.00 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 5.230
Low
7.00
Averages
7.00
High
7.00
Current: 5.230
Low
7.00
Averages
7.00
High
7.00
About NEXT
NextDecade Corporation is an energy company. The Company is engaged in construction and development activities related to the liquefaction and sale of liquefied natural gas (LNG) and the capture and storage of carbon dioxide (CO2) emissions. The Company is constructing and developing a natural gas liquefaction and export facility located in the Rio Grande Valley in Brownsville, Texas (the Rio Grande LNG Facility), which has three liquefaction trains and related infrastructure under construction. Through its subsidiary, Rio Grande LNG, LLC (Rio Grande), the Company is constructing the Rio Grande LNG Facility on the north shore of the Brownsville Ship Channel. The site is located on 984 acres of land which has been leased long-term and includes 15 thousand feet of frontage on the Brownsville Ship Channel. It is also developing a planned carbon capture and storage (CCS) project at the Rio Grande LNG Facility and other potential CCS projects.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
