Energy XRG’s new strategy targets global energy investments By Pramod Kumar June 4, 2025, 2:23 PM Reuters Former BP chief executive Bernard Looney is an XRG board member XRG, the low-carbon energy and chemicals investment arm of Abu Dhabi National Oil Company (Adnoc), has launched a five-year business strategy aimed at transforming it into a global energy investor. The company is valued at around $80 billion. It is aiming to be one of the top five global gas and liquefied natural gas (LNG) businesses, with a total capacity of 20 to 25 million tonnes per annum by 2035, it said in a statement on Tuesday. XRG was set up in November last year and aims to more than double its asset value over the next decade by capitalising on the demand for low-carbon energy and chemicals. The board, which includes former BP CEO Bernard Looney, approved the 2025-2030 business plan. It includes assessing potential upstream gas and LNG merger and acquisition opportunities, in a bid to strengthen its North American business. The company has already struck deals in the US (Rio Grande LNG), Mozambique (Area 4 Rovuma Basin), Egypt (Arcius Energy), Azerbaijan (Absheron) and Turkmenistan (Offshore Block I), the statement said. Sultan Al Jaber, executive chairman of XRG, said the company is scaling platforms in gas, chemicals, and energy solutions to ensure energy remains a catalyst for sustainable growth and development. Egypt awards renewable energy projects worth $400m Altérra backs Italy’s Absolute Energy renewables project Morocco state company gets $340m for energy transition The new strategy backs the company’s “ambition to create a top three global chemicals business”. In October 2024 Adnoc agreed to buy German chemicals maker Covestro for €14.7 billion ($16.7 billion). The acquisition is anticipated to close in the second half of 2025. In March Adnoc and Austria’s energy group OMV agreed to merge their polyolefin operations to form a $60 billion joint venture. Upon completion, Adnoc’s stake in Borouge Group International, the merged entity between Borealis and Borouge, will be transferred to XRG. XRG will continue to develop opportunities in carbon capture and storage, as well as low-carbon fuels, such as biofuels and low-carbon hydrogen, that offer attractive returns, the statement this week added. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
