ADNOC Launches $80 Billion XRG to Lead Low-Carbon Energy and Chemicals Transformation

XRG to Drive Global Growth in Low-Carbon Energy and Chemicals
The Abu Dhabi National Oil Company (ADNOC) has unveiled its new international investment powerhouse, XRG, a company with an initial enterprise value of over $80 billion. XRG is set to capitalize on three major global trends: the transformation of the energy sector, exponential growth driven by artificial intelligence, and the rise of emerging economies. The company’s strategic aim is to more than double its asset value in the next decade by focusing on low-carbon energy and chemicals solutions that are in high demand worldwide. XRG will operate independently, leveraging ADNOC’s extensive expertise and global network of partners to achieve its ambitious growth targets.

Three Strategic Platforms for Sustainable Growth
XRG’s strategy is built around three core platforms that will guide its investments in the energy and chemicals sectors:

1. Global Chemicals Platform: XRG aims to become one of the top five global players in the chemical industry, focusing on producing and delivering essential chemical and specialty products. The platform is designed to meet the projected 70% increase in global chemical demand by 2050. These products are vital for a wide range of industries, from consumer goods to manufacturing, and are integral to modern life.
2. International Gas Platform: This platform will focus on creating a world-scale integrated gas portfolio, with a particular emphasis on natural gas as a lower-carbon transition fuel. XRG aims to meet the expected 15% rise in global natural gas demand over the next decade, as well as the anticipated 65% increase in liquefied natural gas (LNG) demand by 2050. XRG’s expertise will play a critical role in fulfilling the world’s growing energy needs during the energy transition.
3. Low Carbon Energies Platform: Dedicated to supporting the global shift toward sustainable energy, this platform will invest in low-carbon technologies and decarbonization solutions. One key focus will be the market for low-carbon ammonia, a product projected to grow from near zero to 70-90 million tonnes per year by 2040. By investing in such technologies, XRG aims to contribute significantly to the global effort to reduce carbon emissions while driving economic growth in emerging markets.

ADNOC’s Vision for Sustainable Energy Leadership
Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, highlighted that the creation of XRG marks a pivotal step in the company’s strategy to prioritize transformational growth. With a robust track record in energy, global partnerships, and strategic market access, ADNOC sees XRG as a catalyst for driving sustainable economic growth. Through XRG, ADNOC aims to foster technological innovation and provide the energy and chemicals products needed to improve lives across the world, while reinforcing the UAE’s position as a global leader in energy and chemicals.

XRG’s Launch and Future Plans
XRG is slated to begin its operations in Q1 2025, with the first major milestone being a global strategy day set for that year. This will mark the start of its ambitious journey to revolutionize the low-carbon energy and chemicals sectors.