Abu Dhabi National Oil Company (ADNOC) has unveiled plans to launch a new international investment firm, XRG, focused on lower-carbon energy solutions and chemicals. With an enterprise value surpassing $80 billion, XRG is set to begin operations in the first quarter of 2025.
The newly formed company will target high-impact investments in three core areas: natural gas, chemicals, and lower-carbon energy. According to ADNOC, XRG will initially emphasize these strategic platforms to drive global transformation in energy and chemicals markets.
The firm’s Global Chemicals division is poised to become one of the top five chemical players worldwide, producing vital chemical and specialty products. These products are expected to help meet a projected 70% surge in global chemical demand by 2050.
XRG’s International Gas platform will build a world-scale gas portfolio, aiming to address the anticipated 15% rise in global natural gas demand over the next decade. This expansion will position natural gas as a crucial transition fuel, while also catering to a 65% growth in liquefied natural gas (LNG) demand by 2050.
The Low Carbon Energies division will focus on investing in decarbonization technologies and low-carbon energy solutions, aiming to capitalize on the growing market for sustainable energy. ADNOC projects that the market for low-carbon ammonia alone could increase by 70-90 million tons per year by 2040, from virtually no production today.
Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, expressed confidence in XRG’s potential, stating, “We are committed to delivering long-term value for our stakeholders and reinforcing Abu Dhabi and the UAE’s role as a global energy and chemicals leader.”
The announcement comes shortly after ADNOC’s agreement to acquire Germany’s Covestro, a leading chemicals manufacturer, for $15.5 billion, reinforcing its strategic focus on energy and chemicals.
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