ADNOC Launches $80 Billion Investment Vehicle XRG

In a statement, ADNOC explained that XRG aims to more than double its asset value over the next decade by capitalizing 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. The independently operated investment company will initially focus on developing three core strategic value platforms: Global Chemicals, International Gas and Low Carbon Energies.

The Global Chemicals platform wants to become a top 5 global chemicals player, producing and delivering chemical and specialty products, to meet the projected 70% increase in global demand by 2050.

The goal of the International Gas platform is to build a world-scale integrated gas portfolio to help meet the 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 LNG by 2050.

XRG’s Low Carbon Energies platform will invest in the solutions needed to meet increasing demand for low-carbon energies and decarbonization technologies to drive economic growth through the energy transition. According to ADNOC, the market for low-carbon ammonia alone is expected to grow by between 70-90 million t/y by 2040, from currently close to zero.

Ahmed Al Jaber, ADNOC managing director and group CEO, said: “In line with our board mandate to prioritize 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.’’

ADNOC announced that XRG will formally commence operations in the first quarter of 2025.