ADNOC launches $80+ billion XRG for low-carbon energy and chemicals

ADNOC today announced the launch of XRG, a groundbreaking international investment company focused on lower-carbon energy and chemicals, with an enterprise value exceeding US$80 billion. This ambitious move signals ADNOC’s commitment to transforming the global energy landscape and positioning the UAE at the forefront of sustainable growth.

The announcement was made during ADNOC’s annual Board of Directors meeting, presided over by President His Highness Sheikh Mohamed bin Zayed Al Nahyan, at ADNOC Headquarters. His Highness highlighted XRG’s role in driving ADNOC’s international growth strategy while accelerating the transition to a low-carbon economy.

Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, emphasised XRG’s pivotal role, saying: "XRG marks a bold new chapter for ADNOC, leveraging our unmatched expertise, global partnerships, and market access to drive sustainable economic growth and deliver the energy and products essential for improving lives worldwide."

XRG aims to double its asset value in the next decade, addressing the global demand for sustainable energy and chemicals. Its strategy is rooted in three key global megatrends: energy transformation, the rise of artificial intelligence (AI), and the growth of emerging economies. XRG’s focus will initially center on three strategic platforms:

• XRG’s Global Chemicals platform aims to be a top 5 global chemicals player, producing and delivering chemical and specialty products essential for modern life, to meet the projected 70% increase in global demand by 2050.
• XRG’s International Gas platform will build a world-scale integrated gas portfolio to help meet the anticipated 15% increase in global natural gas demand over the next decade, as a lower carbon transition fuel, as well as meet the expected 65% increase in demand for LNG by 2050.
• XRG’s Low Carbon Energies platform will invest in the solutions needed to meet increasing demand for low carbon energies and decarbonisation technologies to drive economic growth through the energy transition. The market for low carbon ammonia alone is expected to grow by between 70-90 million tonnes per annum by 2040, from close to zero now.

In line with its net zero by 2045 goal, ADNOC reaffirmed its position as one of the least carbon-intensive energy producers globally. The company is reducing its carbon intensity by 25% and targeting near-zero methane emissions by 2030.

ADNOC’s Board also endorsed an AED200 billion (US$54.5 billion) commitment to the UAE economy through its In-Country Value (ICV) program over the next five years. The program has already driven AED55 billion (US$15 billion) into the local economy in 2023, creating 5,500 private sector jobs for Emiratis.

During the meeting, ADNOC’s advancements in artificial intelligence (AI) were spotlighted. The company aims to become the world’s most AI-enabled energy company, leveraging technologies like the ENERGY^ai by ADNOC platform and pioneering solutions such as Robowell, the first autonomous well-control system. These innovations are part of ADNOC’s strategy to integrate AI across operations, enhancing efficiency and emissions reduction.

President His Highness Sheikh Mohamed also visited ADNOC’s AI Center, meeting young Emirati innovators spearheading these advancements. He commended ADNOC for prioritising human capital development and fostering Emirati talent in cutting-edge sectors.

A catalyst for UAE’s economic diversification

Under ADNOC’s leadership, the UAE continues to drive economic growth and industrial development. ADNOC’s investments align with the ‘Make it in the Emirates’ initiative, which aims to boost local manufacturing capabilities. Agreements worth AED72 billion (US$19.6 billion) have been signed since 2022, with a target of AED90 billion (US$24.5 billion) by 2030.

The launch of XRG underscores ADNOC’s dedication to reshaping the energy industry while creating long-term sustainable value for the UAE and the world. With ambitious plans to meet the growing global demand for energy and chemicals, ADNOC continues to lead the way in innovation, sustainability, and economic diversification.

As ADNOC builds on its achievements, XRG is set to play a pivotal role in addressing the energy transition and delivering the solutions needed for a more sustainable future.