Following the Board’s strategic endorsement, Abu Dhabi National Oil Company (Adnoc) today (November 27) announced the launch of XRG, a groundbreaking international lower-carbon energy and chemicals investment company, with an enterprise value of over $80 billion.

 

On the new venture, Adnoc said XRG aims to more than double its asset value over the next decade by capitalising on demand for low-carbon energy and chemicals driven by three megatrends: the transformation of energy, exponential growth of AI, and the rise of emerging economies.

 

Building on Adnoc’s expertise and transformational international acquisitions, the independently operated investment company 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 specialty products essential for modern life, to meet the projected 70 percent 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 percent increase in global natural gas demand over the next decade, as a lower carbon transition fuel, as well as meet the expected 65 percent 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 now. XRG will formally kick off activities in Q1 next year.

 

Speaking on the launch, Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of the Abu Dhabi National Oil Company (Adnoc), said: "In line with our Board mandate to prioritise transformational growth, XRG marks a bold new chapter for 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," he added.-TradeArabia News Service