Abu Dhabi’s oil company ADNOC is launching a new firm, XRG, which will be an international lower-carbon energy and chemicals investment company with an enterprise value of over $80 billion, the company pumping nearly all the oil of the United Arab Emirates (UAE) said on Wednesday.
XRG will formally commence activities in the first quarter of 2025.
Initially, XRG will focus on transformational global investments that create value across natural gas, chemicals, and lower-carbon energy solutions, ADNOC said in a statement.
The independently operated investment company will initially focus on developing these three core strategic value platforms.
The Global Chemicals division of the new company aims to be a top 5 global chemicals player, producing and delivering chemical and specialty products essential for modern life, to meet the projected 70% increase in global demand by 2050.
The International Gas platform will 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.
Finally, XRG’s Low Carbon Energies division will invest in the solutions needed to meet the increasing demand for low-carbon energies and decarbonization technologies to drive economic growth through the energy transition. The market for low-carbon ammonia alone is expected to grow by between 70-90 million tons per annum by 2040, from close to zero now, according to ADNOC.
“We are committed to delivering long-term value for our stakeholders and reinforcing Abu Dhabi and the UAE’s role as a global energy and chemicals leader,” said Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO.
The announcement of a global gas, chemicals, and low-carbon energy firm comes a month after ADNOC agreed to buy Germany’s chemicals giant Covestro in a deal worth $15.5 billion (14.7 billion euros) including debt.
By Charles Kennedy for Oilprice.com