ADNOC Expands Global Presence with XRG Investment Arm
Abu Dhabi National Oil Company (ADNOC) has consolidated its US investments under its newly established international investment subsidiary, XRG. This move aligns with ADNOC's strategic shift towards lower-carbon energy and chemicals.
XRG's portfolio currently includes investments in ExxonMobil's hydrogen plant and NextDecade's liquefied natural gas facility in the United States. In November 2023, XRG announced its majority ownership acquisition of German chemicals giant Covestro. The company has also established a joint venture with BP in Egypt focused on gas exploration.
"XRG is an international energy investment company that will focus on projects across the spectrum," said Sultan Al Jaber, ADNOC's Chief Executive Officer. "This includes gas, chemicals, low-carbon fuels, and energy infrastructure."
Al Jaber emphasized the importance of diversifying energy options, highlighting the growing demand for natural gas in data centers and chemicals for liquid coolants. He also noted the mega-trends of emerging markets, energy system transitions, and the rapid growth of artificial intelligence as key drivers of future energy needs.
"ADNOC's investment in XRG is a testament to our commitment to shaping a sustainable energy future," added Al Jaber. "We believe that XRG will play a vital role in accelerating the development and deployment of low-carbon solutions."