Abu Dhabi National Oil Company (Adnoc) announced the launch of XRG, an $80 billion independently operated investment venture focused on chemicals, natural gas, and low-carbon energy. The company aims to strengthen its presence in international markets, with XRG set to commence operations in the first quarter of 2025.

Adnoc projects robust demand growth across its targeted sectors by 2050, including a 70% surge in chemical demand, a 15% rise in natural gas consumption, and a 65% increase in LNG demand. The low-carbon ammonia market alone is expected to expand by 70–90 million metric tons by 2040, up from negligible levels today.

“XRG marks a bold new chapter for Adnoc,” said Sultan Ahmed Al-Jaber, Adnoc’s Managing Director and Group CEO. “Leveraging our unmatched expertise, strategic market access, and global partnerships, XRG will foster sustainable growth, technological innovation, and deliver essential energy solutions worldwide.”

International Expansion

Adnoc’s aggressive global growth strategy has included its entry into the U.S. market and expanded operations in Africa, particularly in Mozambique and Egypt. Additionally, the Ruwais LNG project, set for completion in 2028, will increase UAE’s LNG production capacity to 15 million metric tons annually, catering to both domestic and Asian markets. This aligns with Adnoc’s recent deal with India’s Gail Ltd. for the supply of up to 520,000 metric tons of LNG annually starting in 2026.

Chemicals and Clean Energy Ambitions

Adnoc has set its sights on becoming a top-five global player in the chemicals industry, primarily through mergers and acquisitions. Recent milestones include:

• The €14.7 billion acquisition agreement for Covestro AG, a producer of isocyanates, polycarbonates, and polyols.
• Increasing its stake in Fertiglobe PLC to 86.2% via a $3.6 billion transaction with OCI NV.
• Ongoing discussions with OMV AG on merging their Borealis AG and Borouge PLC joint ventures.

The company is also advancing its clean ammonia initiatives, including a 1 MMt/y blue ammonia plant in Ruwais scheduled for startup in 2027. Fertiglobe recently secured Germany’s first renewable ammonia contract under the H2Global scheme at €1,000 per metric ton delivered to Rotterdam.

Adnoc’s efforts underline its commitment to delivering sustainable energy solutions while capturing growth opportunities in the evolving global energy landscape.