Adnoc launches US$80 bn company to power international oil/gas ventures
State-owned firm Adnoc has launched an investment company that will operate across chemicals, gas and low-carbon energies as it targets further expansion into international markets, the company said recently. XRG, an independently operated US$80 billion venture from Adnoc, will begin operations in the first quarter of 2025, it said.
Adnoc sees demand for chemicals rising 70% by 2050, and global natural gas demand will increase 15% and LNG demand will shoot up 65% by the same year. The market for low-carbon ammonia alone is expected to grow by 70 million-90 million tonnes by 2040, from about zero now, it said.
XRG’s 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.
“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,” Sultan Ahmed al-Jaber, Adnoc managing director/group CEO, said in the statement.
Adnoc has pursued an aggressive international growth strategy, marking its first expansion into the US this year and deepening its footprint in Africa in recent years, including in Mozambique and Egypt.
The Ruwais, Abu Dhabi, LNG project, set to come online in 2028, will grow the UAE’s LNG production capacity to 15 million tonnes/year, with much of that product set to meet domestic demand as well as flow to international markets, predominantly in Asia.
Gail India Ltd. recently signed a ten-year supply agreement with Adnoc Gas to receive up to 520,000 tonnes/year of LNG from its existing Das Island facility starting in 2026.
Adnoc recently outlined its ambition to become a top-five player in the global chemicals industry, mainly through M&As.
In October, Adnoc agreed to acquire German materials producer Covestro in a EUR14.7 billion deal. Covestro recommended Adnoc’s takeover bid to Covestro shareholders earlier this month.
Meanwhile, Adnoc and OMV AG have been in negotiations since mid-2023 on the potential merger of their Borealis AG and Borouge petrochemical and polymer joint ventures.
