Adnoc’s XRG reveals LNG expansion plans

In November 2024, the UAE giant formed XRG, with an enterprise value of over $80 billion, to invest in gas and LNG, chemicals, and low-carbon energies.

XRG stated in a press release on Tuesday that its board of directors has endorsed the company’s five-year business plan for 2025–2030, reaffirming its commitment to accelerated growth.

“The board directed XRG to build a top five integrated global gas and liquefied natural gas (LNG) business, targeting 20–25 million tons per annum of capacity by 2035 and supported the assessment of potential upstream gas M&A and LNG opportunities to strengthen its North American gas position,” the firm said.

XRG said this follows recent acquisitions and partnerships in the United States (Rio Grande LNG), Mozambique (Area 4 Rovuma basin), Egypt (Arcius Energy), Azerbaijan (Absheron), and Turkmenistan (Offshore Block I).

Earlier this year, XRG completed the purchase of Galp’s 10 percent interest in the Area 4 concession of the Rovuma basin in Mozambique, which includes Eni’s Coral South FLNG project.

The acquisition will entitle it to a share of the LNG production from the concession, which has a combined production capacity exceeding 25 mtpa.

Moreover, Adnoc last year purchased 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 deal remains subject to a final investment decision (FID).

Adnoc is investing heavily in its LNG business.

In June 2024, it made the final investment decision to build its LNG export terminal in UAE’s 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.

Adnoc currently owns a 70 percent stake in Adnoc LNG, which produces about 6 mtpa of LNG from its facilities on Das Island.