The Abu Dhabi National Oil Company (ADNOC) is transferring its stakes in US hydrogen and liquefied natural gas (LNG) assets to its new international investment firm, XRG.
In November 2024, ADNOC announced the launch of XRG, an investment firm focusing on lower-carbon energy and chemicals, with an enterprise value of $80bn. The company aims to leverage the growing demand for sustainable energy solutions and align with global megatrends.
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ADNOC CEO Sultan Al Jaber confirmed the move, highlighting XRG’s focus on energy transition technologies and advanced solutions, as reported by Bloomberg.
ADNOC’s holdings in a hydrogen venture with Exxon Mobil and NextDecade’s LNG export project will be moved to XRG.
The company aims to more than double its asset value by 2034.
XRG will also manage Abu Dhabi’s share of a joint venture with BP for gas projects in the Mediterranean, including Egypt.
XRG will control Covestro following a $13bn agreement to acquire the German polymer materials manufacturer.
In September 2024, ADNOC agreed to acquire a 35% stake in Exxon’s proposed hydrogen project in Baytown in the US state of Texas.
This follows ADNOC’s earlier acquisition of a stake in NextDecade’s LNG project in the state.
ADNOC is also in discussions with Abu Dhabi’s Mubadala Investment about purchasing Nova Chemicals, which operates two US facilities.
The United Arab Emirates is expanding in chemicals and gas to meet future energy demand and supply plastics for consumer products during the energy transition.
ADNOC is expanding its energy portfolio beyond oil, placing a greater emphasis on gas trading and chemical derivatives, in anticipation of rising demand for these products.
