$80 billion ‘powerhouse’ makes its entrance on energy stage with gas, low-carbon tools, and chemicals in mind

The UAE’s energy giant Abu Dhabi National Oil Company (ADNOC) has unveiled XRG, a low-carbon energy, natural gas, and chemicals investment company with an enterprise value of over $80 billion, which is envisioned to power the world with lower-emission energy to enable a more sustainable future.

According to ADNOC, XRG will initially focus on global investments that create value across natural gas, chemicals, and lower-carbon energy solutions to meet the rising global demand for lower-emission fuels and chemicals needed to unlock sustainable economic growth.

In line with this, the new firm’s Global Chemicals platform has set its cap on being among the top five global chemicals players, producing and delivering chemical and specialty products deemed as essential for modern life, to meet the projected 70% increase in global demand by 2050.

Furthermore, XRG’s International Gas platform plans to build a world-scale integrated gas portfolio to help meet the anticipated 15% increase in global natural gas demand over the next decade, as a lower carbon transition fuel, and the expected 65% increase in demand for liquefied natural gas (LNG) by 2050.

On the other hand, the company’s Low Carbon Energies platform is determined to bankroll the solutions needed to meet the rising demand for low-carbon energies and decarbonization technologies to drive economic growth through the energy transition, especially since the market for low-carbon ammonia alone is projected to grow by between 70-90 million tons per annum by 2040, from close to zero now.

In pursuit of its growth strategy to more than double asset value within the next decade, ADNOC claims its newly created “powerhouse” aims to capitalize on three mega-trends, covering energy transformation, exponential artificial intelligence (AI) growth, and emerging economies.

As XRG will formally open its doors to start activities in Q1 2025, a global strategy day is expected to be held next year. The new company is anticipated to accelerate ADNOC’s international expansion, building on previous expertise, a network of global partners, and strategic market access.

While commenting on ADNOC’s “bold new chapter,” Dr. Sultan Al Jaber, ADNOC Managing Director and Group CEO, emphasized: “Building on our unrivalled track record in energy and investments, network of global partners, and strategic market access, XRG will drive sustainable economic growth, foster technological innovation, and deliver the energy and products needed to improve lives around the world.”

The UAE giant’s subsidiary, ADNOC Gas, recently inked a ten-year LNG sales and purchase agreement (SPA) with India’s GAIL, following the announcement about acquiring the parent company’s 60% stake in the Ruwais LNG plant in the second quarter of 2028, when the first production is due.

Through the Ruwais LNG project, ADNOC is more than doubling its existing UAE LNG production capacity to around 15 million metric tons per annum (mtpa) while building an integrated global gas business with strategic investments in the U.S., Egypt, Mozambique, and Azerbaijan.

The board directed ADNOC to double down on its 2030 sustainability strategy and its net zero by 2045 ambition. The company is further reducing its carbon intensity by 25% and targeting near-zero methane emissions by 2030.

Dr. Al Jaber underlined: “This year has been a transformative period for ADNOC where we have taken important steps to future-proof our business, pivot to new growth opportunities across the energy value chain and the world, and accelerate the adoption of AI to drive efficiency and unlock greater value.

“With the support of all my colleagues across the ADNOC Group, we will build on this momentum to deliver more energy with fewer emissions to empower lives and fuel economies while delivering long-term sustainable value and growth.”