UAE – Mubasher: Abu Dhabi National Oil Company (ADNOC) has launched XRG to be a groundbreaking international lower-carbon energy and chemicals investment company with an enterprise value of more than $80 billion, according to an official statement.
The independently operated investment company will initially focus on three main strategic value platforms under the names: Global Chemicals, International Gas, and Low Carbon Energies.
XRG will officially commence activities in the first quarter (Q1) of 2025 while a global strategy day will be held in 2025.
ADNOC’s new chemicals investment firm XRG aims to more than double its asset value over the next 10 years by capitalising on demand for low-carbon energy and chemicals driven by three megatrends, namely energy transformation, exponential growth of AI, and rise of emerging economies.
Three XRG Platforms
The Global Chemicals platform aims to be ‘a top 5 global chemicals player’ that produces and delivers chemical and speciality products essential for modern life to meet the expected 70% surge in global demand by 2050.
Meanwhile, the International Gas platform will establish a world-scale integrated gas portfolio to help meet the projected 15% growth in global natural gas demand over the next 10 years, as a lower carbon transition fuel. This is besides meeting the anticipated 65% rise in demand for LNG by 2050.
The last of XRG’s platforms is Low Carbon Energies which will invest in the solutions needed to meet the growing demand for low carbon energies and decarbonisation technologies to drive economic growth through energy transition. It is worth noting that the market for low carbon ammonia alone will likely grow by 70-90 million tonnes per annum by 2040, from close to zero now.
ADNOC Managing Director and Group CEO, Sultan Ahmed Al Jaber, said: “In line with our board mandate to prioritise transformational growth, XRG marks a bold new chapter for ADNOC.”
Al Jaber noted: “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.”
ADNOC’s official concluded: “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.’’
