Abu Dhabi: The Abu Dhabi National Oil Company (ADNOC) has announced the launch of XRG, a pioneering international investment company focused on lower-carbon energy and chemicals, with an enterprise value exceeding US$80 billion. This initiative comes following the strategic endorsement by ADNOC’s Board, marking a significant step towards addressing the global demand for sustainable energy solutions.
According to Emirates News Agency, XRG’s objective is to more than double its asset value over the next decade by capitalizing on the increasing demand for low-carbon energy and chemicals. This demand is driven by three major trends: the transformation of energy systems, the exponential growth of artificial intelligence, and the rise of emerging economies. XRG will operate independently, leveraging ADNOC’s extensive expertise and strategic acquisitions to focus on three core value platforms.
The Global Chemicals platform under XRG aims to rank among the top five global chemical players. It seeks to produce and d
eliver essential chemical and specialty products, responding to the projected 70 percent increase in global demand for these products by 2050. Meanwhile, the International Gas platform intends to develop a comprehensive integrated gas portfolio. This initiative aims to meet the anticipated 15 percent rise in global natural gas demand over the next decade, positioning natural gas as a critical lower-carbon transition fuel. The platform also targets the expected 65 percent growth in demand for LNG by 2050.
Additionally, XRG’s Low Carbon Energies platform is set to invest in solutions that address the growing need for low-carbon energies and decarbonization technologies. These innovations are vital for driving economic growth through the energy transition. Notably, the market for low-carbon ammonia is anticipated to increase significantly, from nearly zero to between 70-90 million tonnes per annum by 2040.
Dr. Sultan bin Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, stated, “In line with our Board m
andate to prioritize transformational growth, XRG marks a bold new chapter for ADNOC. Building on our unrivaled 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. 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.”
XRG is scheduled to officially begin its operations in the first quarter of 2025. A global strategy day is planned for the same year to outline the company’s future initiatives and projects.