Meed | Adnoc launches energy and chemicals investment vehicle

Adnoc launches energy and chemicals investment vehicle

28 November 2024

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Abu Dhabi National Oil Company (Adnoc Group) has launched a new investment company named XRG that will focus on low-carbon energy sources and the chemicals value chain.

XRG has an enterprise value of over $80bn, Adnoc said in a statement on 27 November. The creation of the new investment vehicle was endorsed by Adnoc’s board of directors in a meeting chaired by Sheikh Mohamed Bin Zayed Al-Nahyan, UAE President and Ruler of Abu Dhabi.

XRG aims to more than double its asset value over the next decade by “capitalising on demand for low-carbon energy and chemicals”.

The independently operated investment company will initially focus on developing three value platforms, which are:

Global chemicals – XRG aims to be a top five global chemicals player, producing and delivering chemical and specialty products, to help meet the projected 70% increase in global demand by 2050.
International gas – XRG aims to build an integrated gas portfolio to help meet an anticipated 15% increase in global natural gas demand over the next decade, as a lower carbon transition fuel, as well as meet the expected 65% increase in demand for liquefied natural gas by 2050.
Low-carbon energies – XRG seeks to invest in boosting the supply chain needed to meet increasing demands for low-carbon energies and decarbonisation technologies to drive the global energy transition. The market for low-carbon ammonia alone is expected to grow by between 70-90 million tonnes a year by 2040, from close to zero now.

XRG will formally begin operations in the first quarter of 2025, Adnoc said, adding that it will host a global strategy day next year.

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Indrajit Sen