ADNOC investment platform XRG targets global reach in LNG, chemicals

Dubai: ADNOC's energy investment arm XRG has gotten the go-ahead for its 5-year business plan, which seeks 'accelerated growth and long-term value creation'.

Launched in November 2024, XRG has by now put together a track record as a 'differentiated global energy investor', with an enterprise value of over $80 billion.

The XRG Board of Directors has endorsed plans to scale up the three core platforms – international gas, global chemicals, and energy solutions.

According to Dr. Sultan Ahmed Al Jaber, Executive Chairman of XRG and Managing Director and Group CEO of ADNOC, “XRG is investing in the energy systems of the future – more integrated, more resilient, and responsive to global demand.

"With the Board’s endorsement of our five-year business plan, we are scaling platforms in gas, chemicals, and energy solutions to drive long-term value and ensure energy remains a catalyst for sustainable growth and development.”

XRG will now work to build a 'Top 5' integrated global gas and liquefied natural gas (LNG) business, targeting 20–25 million tons per annum of capacity by 2035. It will be supported by the assessment of potential upstream gas M&A and LNG opportunities to strengthen its North American gas position, said a statement.

"This follows recent acquisitions and partnerships in the US (Rio Grande LNG), Mozambique (Area 4 Rovuma Basin), Egypt (Arcius Energy), Azerbaijan (Absheron), and Turkmenistan (Offshore Block I), enabling XRG to meet rising global demand for flexible, lower-carbon energy," it added.

The Board of Directors has also endorsed the company’s ambition to create a Top 3 global chemicals platform.

Subject to approvals, the proposed formation of Borouge Group International and proposed acquisition of Covestro 'anchors an industry leading portfolio across polyolefins, performance materials, and future specialty segments'.

The Board also directed XRG through its Energy Solutions platform to expand investments across the energy value chain while 'continuing to develop select opportunities in carbon capture and storage and low-carbon fuels such as biofuels and low-carbon hydrogen'. These would align with 'attractive return profiles'.

XRG will take up its 2025–30 business plan immediately.