ADNOC unveils XRG, an $80bn investment leader in lower-carbon energy and chemicals

ADNOC has taken a bold step into the future of energy with the launch of XRG, an independent investment company valued at over $80 billion. The announcement, made on November 27, 2024, highlights XRG’s mission to transform the global energy and chemicals industry by focusing on natural gas, chemicals, and low-carbon energy solutions. This ambitious initiative comes as part of ADNOC’s strategy to address the rising demand for sustainable energy and materials while seizing opportunities in emerging technologies and markets.

XRG is designed to harness three major global trends—energy transformation, the rapid growth of artificial intelligence, and the economic ascent of emerging markets. The company has set a goal to more than double its asset value within the next decade, cementing its role as a critical player in the energy transition. According to ADNOC’s leadership, XRG will operate independently to maximize impact while leveraging ADNOC’s extensive experience, international partnerships, and access to strategic markets.

The company will initially focus on developing a robust chemicals platform to meet the projected 70% growth in global chemical demand by 2050. Additionally, it aims to build an integrated natural gas portfolio to address the expected 15% increase in global demand over the next decade and the forecasted 65% surge in LNG needs by mid-century. Another key area of focus will be low-carbon energy technologies, including decarbonization solutions and low-carbon ammonia production, a market expected to grow by up to 90 million tonnes annually by 2040.

Dr Sultan Ahmed Al Jaber, ADNOC’s Managing Director and Group CEO, described XRG as a transformative venture designed to drive long-term sustainable growth. He highlighted ADNOC’s unmatched experience in global energy markets and its proven ability to secure value-driven partnerships as key factors behind the new company’s creation. Dr Al Jaber also noted that XRG aligns with the UAE’s broader vision to remain at the forefront of global energy innovation and development. The initiative reinforces the nation’s commitment to sustainability and economic growth while delivering energy solutions that improve lives worldwide.

XRG is set to commence operations in the first quarter of 2025, with plans to host a global strategy day later that year. This event is expected to provide further details about the company’s vision and investment priorities. As ADNOC sets its sights on reshaping the global energy and chemicals landscape, the launch of XRG signals a significant shift toward a lower-carbon, technology-driven future.