- ADNOC unveiled XRG, an international investment company focused on lower-carbon energy and chemicals, with an enterprise value exceeding $80 billion.
- XRG plans to more than double its asset value in the next decade, leveraging trends such as energy transformation, AI growth, and emerging economies.
- The company will operate across three core platforms: Global Chemicals, International Gas, and Low Carbon Energies.
According to IAA PortNews, ADNOC has announced the launch of XRG, a revolutionary lower-carbon energy and chemicals investment company with an enterprise value of over $80 billion. Set to formally begin operations in Q1 2025, XRG aims to capitalize on surging global demand for sustainable energy solutions and chemicals, driven by transformative megatrends like energy transition, the exponential rise of AI, and the growth of emerging economies.
Strategic Focus Areas
XRG will develop three key value platforms to position itself as a leader in the lower-carbon energy and chemicals sector:
- Global Chemicals Platform
XRG aims to establish itself as a top-five global chemicals producer, focusing on delivering essential chemical and specialty products. By 2050, global demand for chemicals is expected to grow by 70%, and XRG is poised to meet this need through innovative production and delivery strategies.
- International Gas Platform
As natural gas is increasingly viewed as a lower-carbon transition fuel, XRG plans to build an integrated, world-scale gas portfolio. This initiative will cater to the projected 15% growth in global natural gas demand over the next decade and the expected 65% increase in LNG demand by 2050.
- Low Carbon Energies Platform
XRG will heavily invest in low-carbon energy solutions and decarbonization technologies to support global economic growth during the energy transition. The market for low-carbon ammonia, for instance, is anticipated to grow by 70-90 million tonnes per annum by 2040, providing a significant opportunity for expansion.
Future Plans
XRG will begin its formal activities in early 2025, with a global strategy day planned for the same year. Building on ADNOC’s extensive expertise and international acquisitions, XRG is set to play a pivotal role in meeting the rising demand for sustainable energy solutions while driving economic growth and innovation.
Conclusion
The launch of XRG underscores ADNOC’s commitment to advancing the global energy transition. With its strategic focus on chemicals, gas, and low-carbon energies, XRG is well-positioned to address the challenges and opportunities of a rapidly evolving energy landscape.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: IAA PortNews
