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Adnoc launches USD 80 bn investment company: Abu Dhabi National Oil Company (Adnoc) launched XRG, an international investment company focused on lower-carbon energy and chemicals, with an investment value over USD 80 bn, according to a press release. The company plans to double its asset value over the next decade, and will hold a global strategy day sometime next year.
XRG is set to begin operations in 1Q 2025 and will focus on developing three core platforms:
- The chemicals platform aims to position XRG among the top five global chemicals producers, targeting a 70% increase in global demand for chemical and specialty products by 2050;
- The international gas platform will develop an integrated gas portfolio, anticipating a 15% increase in global natural gas demand over the next decade and a 65% increase in liquefied natural gas demand by 2050;
- The low carbon energies platform will invest in solutions for low-carbon energies and decarbonization technologies, backed by forecasts for the low-carbon ammonia market to reach between 70-90 mn tonnes per annum by 2040, up from near-zero levels currently.
REMEMBER- Adnoc has been expanding its chemicals and low-carbon energy business in recent months: The state-run oil giant finalized its USD 3.62 bn acquisition of OCI Global’s 50%+1 stake in the chemical producer Fertiglobe last month. It also made a public takeover offer earlier in October to acquire German chemicals company Covestro for EUR 14.7 bn, which is expected to close soon. The company is also looking to merge its plastics unit Borouge with Austria-based integrated oil and gas company OMV’s Borealis, but the transaction is facing delays.
IN OTHER ADNOC NEWS-
Adnoc’s board approved the company’s target to inject AED 200 bn (USD 54.5 bn) into the UAE economy over the next five years under the national in-country value (ICV) program, according to a statement. The ICV program rewards companies that prioritize localizing supply chains and attracting foreign investments.
How it’s going: The program has funnelled AED 55 bn into the economy so far this year, and created 5.5k Emirati jobs in the private sector through a partnership with the Emirati Talent Competitiveness Council. It has reinvested a total of AED 242 bn and employed 17k Emiratis in the private sector since the program’s launch in 2018.
Adnoc also inked AED 72 bn worth of industrial manufacturing agreements with local firms since 2022, aiming for AED 90 bn by 2030 under the UAE’s Make it in the Emirates initiative.
