ADNOC Launches XRG to Drive Lower-Carbon Energy and Chemicals Investment

The Abu Dhabi National Oil Company (ADNOC) has announced the launch of XRG, a new venture described as a “lower-carbon energy and chemicals investment powerhouse.” With an initial portfolio valued at $80 billion, XRG aims to more than double its asset value by 2035, positioning itself as a major player in the evolving energy landscape.

XRG’s growth will leverage key megatrends including the transformation of energy systems, the exponential rise of artificial intelligence (AI), and the economic growth of emerging markets. The investment focus will be on three core strategic platforms: Global Chemicals, International Gas, and Low Carbon Energies.

The Global Chemicals platform is set to become a top five global chemicals player, aiming to meet an estimated 70% growth in chemicals demand by 2050. It will focus on providing chemical and specialty products to industries worldwide. The International Gas platform will target the anticipated 15% increase in global natural gas demand over the next decade and support the expected 65% rise in demand for liquefied natural gas (LNG) by 2050. ADNOC refers to natural gas as a “lower carbon transition fuel,” highlighting its role in the energy transition. The Low Carbon Energies platform will focus on investing in low-carbon fuels and decarbonization technologies, with a specific emphasis on capitalizing on the growing demand for low-carbon ammonia, which is expected to reach 70-90 million tonnes annually by 2050 from almost zero today.

ADNOC Managing Director and Group CEO, Dr. Sultan Al Jaber, commented on the launch of XRG, stating, “In line with our Board mandate 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.”