Following strategic approval from its Board, ADNOC has officially launched XRG, an innovative international investment company focused on lower-carbon energy and chemicals.
XRG, with an enterprise value exceeding $80 billion, aims to play a key role in the future of energy and chemicals by capitalizing on the growing demand for low-carbon solutions.
A Vision for Growth in a Changing World
XRG is set to more than double its asset value over the next decade, driven by three major global megatrends: The ongoing transformation of energy, the rapid growth of artificial intelligence (AI), and the rise of emerging economies.
Strategic Platforms for a Sustainable Future
The company will focus on three core strategic platforms that are crucial for meeting future global demands:
- Global Chemicals Platform: XRG plans to become one of the top five global players in the chemicals sector, focusing on the production and delivery of chemical and specialty products essential for modern life. The platform aims to meet the projected 70% increase in global chemical demand by 2050.
- International Gas Platform: XRG’s international gas platform will develop a world-scale, integrated gas portfolio to help address the expected 15% rise in global natural gas demand over the next decade. The platform will also support the 65% anticipated increase in demand for liquefied natural gas (LNG) by 2050, positioning natural gas as a key fuel in the low-carbon transition.
- Low Carbon Energies Platform: XRG will invest in solutions that meet the growing need for low-carbon energy and decarbonization technologies. This platform focuses on driving economic growth through the energy transition. The market for low-carbon ammonia is expected to expand significantly. It will grow almost 70-90 million tonnes per annum by 2040, up from almost zero today.
A Bold Step Toward Transformational Growth
Dr. Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, commented. “In line with our Board mandate, we prioritize transformational growth. XRG marks a bold new chapter for ADNOC. XRG will leverage its proven expertise in energy and investments. Through global partnerships and strategic market access, we will foster technological innovation. We aim to promote sustainable economic growth and deliver energy solutions that improve lives worldwide.“
Looking Ahead: A Global Strategy Day in 2025
XRG will officially begin its operations in the first quarter of 2025. A global strategy day is scheduled for later that year.
The press release states that the company will drive long-term value for stakeholders. It also aims to reinforce Abu Dhabi and the UAE’s position as a global leader in energy and chemicals.
