Adnoc launches $80bn unit for low-carbon transition

Beata Zawrzel via Reuters Connect

• XRG to start in Q1 2025
• Low-carbon energy investments
• Initial focus on chemicals and gas

State-backed energy major Abu Dhabi National Oil Company (Adnoc) has launched a new global lower-carbon energy and chemicals investment company valued at more than $80 billion.

XRG will aim to more than double its asset value over the next decade by capitalising on the demand for low-carbon energy and chemicals.

The three factors driving demand are energy transformation, the growth of artificial intelligence and the rise of emerging economies.

The company will commence operations in the first quarter of 2025 and initially focus on developing a global chemicals platform, producing and delivering chemical and specialty products to meet the projected 70 percent increase in global demand by 2050.

It then plans to build an integrated gas portfolio to meet the anticipated 15 percent rise in global natural gas demand over the next decade as a lower carbon transition fuel and meet the expected 65 percent increase in LNG demand by 2050.

Finally, XRG will invest in solutions to meet the increasing demand for low-carbon energies and decarbonisation technologies.

• Adnoc looks at increased stake sale in gas subsidiary
• Adnoc signs 15-year supply deal for Ruwais LNG
• Revenues of six Adnoc subsidiaries reach $24bn

The market for low-carbon ammonia alone is expected to grow between 70 and 90 million tonnes per annum by 2040, from close to zero. 

Dr Sultan Ahmed Al Jaber, group CEO at Adnoc, said that XRG will drive sustainable economic growth, foster technological innovation, and deliver the energy and products needed to improve lives worldwide.

The company will hold a global strategy day next year.

The UAE certified on Wednesday the feasibility of Adnoc’s West Aquifier CO2 storage facility at the Ruwais industrial site. The project is part of a $15 billion multi-year action plan to decarbonise Adnoc’s operations.