In a bid to accelerate energy transformation, ADNOC announced the launch of XRG, an international lower-carbon energy and chemicals investment company with a value of over $80 billion. XRG aims to more than double its asset value over the next decade by capitalising on the demand for low-carbon energy and chemicals driven by three mega-trends;
- The transformation of energy
- The growth of AI
- The rise of emerging economies
The new investment company will build on ADNOC’s existing experience and transformational international acquisitions, it will initially focus on developing three core strategic value platforms:
- XRG’s Global Chemicals Platform aims to be a top 5 global chemicals player, producing and delivering chemical and speciality products essential for modern life, to meet the projected 70 per cent increase in global demand by 2050.
- XRG’s International Gas Platform will build a world-scale integrated gas portfolio to help meet the anticipated 15 per cent increase in global natural gas demand over the next decade, as a lower carbon transition fuel, as well as meet the expected 65 per cent increase in demand for LNG by 2050.
- XRG’s Low Carbon Energies Platform will invest in the solutions needed to meet increasing demand for low carbon energies and decarbonisation technologies to drive economic growth through the energy transition. The market for low carbon ammonia alone is expected to grow by between 70-90 million tonnes per annum by 2040, from close to zero.
“In line with our Board mandate to prioritise transformational growth, XRG marks a bold new chapter for ADNOC”, said Dr Sultan Ahmed Al Jaber, Managing Director and Group CEO of ADNOC. “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.”
“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 will formally commence activities in 2025.