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Adnoc said on Wednesday XRG aims to more than double its asset value over the next decade by capitalizing on demand for low-carbon energy and chemicals driven by three megatrends: the transformation of energy, exponential growth of AI, and the rise of emerging economies.
According to Adnoc, the independently operated investment company will initially focus on developing three core strategic value platforms.
XRG’s global chemicals platform 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 percent increase in global demand by 2050.
Moreover, XRG’s international gas platform will build a “world-scale” integrated gas portfolio to help meet the anticipated 15 percent increase in global natural gas demand over the next decade, as a lower carbon transition fuel, as well as meet the expected 65 percent increase in demand for LNG by 2050, Adnoc said.
Lastly, XRG’s low-carbon energies platform will invest in the solutions needed to meet increasing demand for low carbon energies and decarbonization technologies.
Adnoc said the market for ammonia alone is expected to grow by between 70-90 million tonnes per annum by 2040, from close to zero now.
According to Adnoc, XRG will formally start activities in the first quarter of 2025, while a global strategy day will be held in 2025.
LNG growth
Last year, UAE’s Adnoc launched a new gas and LNG unit, Adnoc Gas, as part of its plans to further expand its international presence.
Adnoc is investing heavily in its LNG business and in June it took a final investment decision to build its LNG export terminal in Al Ruwais.
The LNG project will consist of two 4.8 mtpa trains with a total capacity of 9.6 mtpa, more than doubling Adnoc’s existing UAE LNG production capacity to around 15 mtpa, as the company builds its international LNG portfolio.
Adnoc currently owns a 70 percent stake in Adnoc LNG, that produces about 6 mtpa of LNG from its facilities on Das Island.
Earlier this year, Adnoc said it will buy an 11.7 percent stake in the first phase of NextDecade’s Rio Grande LNG export terminal in Texas from Global Infrastructure Partners.
Adnoc and NextDecade also entered into a 20-year LNG offtake agreement for the fourth Rio Grande LNG train.
The acquisition marks Adnoc’s first strategic investment in the US.