Abu Dhabi National Oil Company (ADNOC) announced an $80 billion investment in low-carbon energy and chemicals investment company XRG
The Abu Dhabi National Oil Company unveiled the establishment of an investment house-XRG-at a whopping $80 billion, which will become part of ADNOC's low-carbon energy and chemical investments. The operations are expected to commence in the first quarter of 2025. It said that three megatrends would define the future development of the low-carbon energy and chemicals industry: energy transformation, exponential artificial intelligence growth, and rising economies. Within one decade, the company aims to duble its asset value by concentrating on three focal points: natural gas, chemicals, and low-carbon energy.
It also declared that demand for world chemical products and liquefied natural gas has been estimated to grow by 70% and 65%, respectively, between now and 2050. In addition, up to 2040, projections anticipate that the green ammonia market will increase 70-90 million tons. With such a level of demand, the chemical platform, XRG, intends to be within the top five chemical producers in the world for chemicals and special products.
XRG's International Gas Platform will develop an integrated gas portfolio of world-class qualities to meet demands that could spike over the next ten years by an average of 15% due to anticipated long-time growth. The Low Carbon Energy Platform will invest in solutions to meet the advancing low-carbon energy requirement and decarbonization technologies of which low-carbon ammonia is core.
For now, ADNOC is methodically moving forward with realizing its ambition to be a top-five company in the chemical business through mergers and acquisitions. Recently, it has announced the acquisition of Covestro AG at $14.7 billion, empowering it to be one of the world's leading polymer producers. The other acquisition being that of Fertiglobe, in which it now holds a 50% plus one shareount, for $3.62 billion, in what happens to be the company's largest single share-ownership acquisition. It had before this even carried out a successful increase of its stake in Borealis and Borouge.
