Abu Dhabi’s ADNOC, the UAE’s leading oil company, announced the launch of XRG, an international investment firm focused on lower-carbon energy and chemicals. The new company will have an enterprise value of over $80 billion and is set to begin operations in the first quarter of 2025.
XRG will initially target transformative investments in three key sectors: natural gas, chemicals, and lower-carbon energy solutions. ADNOC stated that the company will operate independently, with a focus on creating value in these core areas.
The Global Chemicals division of XRG aims to become one of the top five chemical producers globally, addressing the expected 70% rise in demand for chemicals by 2050. This will involve producing essential chemical and specialty products that are crucial to modern life.
The International Gas platform will build a large-scale, integrated gas portfolio, aimed at meeting the projected 15% global increase in natural gas demand over the next decade. This will help position natural gas as a key fuel in the transition to lower-carbon energy. Additionally, the company expects demand for liquefied natural gas (LNG) to rise by 65% by 2050.
XRG’s Low Carbon Energies division will focus on investing in technologies needed to support the growing demand for low-carbon energy and decarbonization solutions. ADNOC highlighted that the low-carbon ammonia market alone could grow by 70 to 90 million tons per year by 2040, up from nearly zero today.
Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, emphasized the company’s commitment to delivering long-term value and strengthening Abu Dhabi and the UAE’s position as a global leader in energy and chemicals.
This announcement comes just one month after ADNOC finalized a $15.5 billion acquisition of the German chemicals giant Covestro, marking a significant move in ADNOC’s broader strategy to diversify and expand its global footprint in chemicals and low-carbon energy.
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