BlackRock’s GIP commits billions to LNG despite clean energy claims

BlackRock’s GIP commits billions to Rio Grande LNG despite climate and community risks

GIP’s Train 4 investment shows continued fossil fuel dependency, undermining BlackRock’s clean energy claims

NextDecade announced last week that it has reached a final investment decision (FID) on Train 4 of its Rio Grande LNG terminal in Brownsville, Texas, with Global Infrastructure Partners (GIP), now owned by BlackRock, committing up to $1.5 billion for a 50% stake.

This decision doubles down on a project already plagued by legal, financial, environmental, and community risks. Analysts have warned of global LNG oversupply, stranded assets, and declining demand after 2030. Communities and tribal nations in South Texas have opposed the project for years, citing health risks, environmental damage, and construction on sacred Carrizo Comecrudo lands. The Rio Grande LNG terminal is currently projected to emit the equivalent of 44 coal power plants every year—about 163 million tons of carbon dioxide equivalent—and its planned expansion to up to 10 LNG trains could push that number above 300 million tons.

Despite this, BlackRock’s GIP continues to deepen its financial exposure to Rio Grande LNG. Pension funds and other institutional investors are exposed to the project through their commitments to GIP Fund V, including the Washington State Investment Board, the Oregon Investment Council, Connecticut Retirement Plans, and the Teachers Retirement System of New York City. This leaves retirement savings tied to an increasingly risky fossil fuel venture with the potential for stranded assets and financial losses.

This investment comes as GIP’s parent company, BlackRock, seeks approval to acquire Minnesota Power utility. BlackRock and GIP claim they will provide capital to help Minnesota meet its clean energy goals, but its aggressive LNG expansion in Texas demonstrates that BlackRock remains addicted to fossil fuels and cannot be trusted to steward a utility transition.

“BlackRock’s ownership of GIP means the world’s largest asset manager is now directly tied to one of the most damaging LNG terminals in the U.S.,” said Alissa Jean Schafer, Climate and Energy Director at the Private Equity Stakeholder Project. 

“While BlackRock expands its investment in this massive fossil fuel project that threatens South Texas communities, sacred Indigenous lands, and fragile coastal ecosystems, the private equity giant is ironically promising a ‘clean energy transition’ in its attempted takeover of Minnesota Power. This FID for Rio Grande LNG announcement makes it clear: BlackRock is still deeply committed to the expansion of fossil fuels and is not fit to oversee a public utility.”