The Abu Dhabi National Oil Company (ADNOC) has announced the creation of XRG, an international investment company focusing on lower-carbon energy and chemicals, with an initial valuation exceeding $80 billion. Scheduled to launch in the first quarter of 2025, XRG aims to more than double its asset value within a decade by capitalizing on the global energy transition, advancements in artificial intelligence, and growth in emerging markets.
ADNOC, traditionally known for its oil and gas operations, has been diversifying its portfolio to include liquefied natural gas (LNG) and renewable energy sources. Notably, the company recently acquired Covestro, a German plastics and chemicals firm, for $16.3 billion. The establishment of XRG aligns with ADNOC's strategy to build a top-five global chemicals business and develop a comprehensive international gas portfolio to meet rising global demand.
The launch of XRG follows a board meeting led by UAE President Sheikh Mohammed bin Zayed Al Nahyan, during which a 200 billion dirham investment in the local economy over the next five years was also approved.
