ADNOC's US investments moved to international arm XRG

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04/02/2025 15:47

DUBAI, Feb 4 (Reuters) - Abu Dhabi National Oil
Company's investments in the United States now sit within its
new international investment arm XRG, ADNOC's CEO said on
Tuesday, as the oil giant moves to build up a business focused
on lower carbon energy and chemicals. 
    The U.S. investments are in an ExxonMobil hydrogen plant and
in NextDecade's liquefied natural gas facility. 
    ADNOC announced XRG in November, saying it would be worth
more than $80 billion.
    XRG will also be the majority owner of German chemicals
maker Covestro after its shareholders approved a takeover offer
worth 14.7 billion euros ($15.22 billion), including debt. XRG
also set up a joint venture with BP in Egypt, initially focused
on gas.
    ADNOC said in September it would acquire a 35% stake in a
planned ExxonMobil  XOM.N  large-scale hydrogen plant in Texas,
which could also produce ammonia. In May, ADNOC said it bought
an 11.7% stake in NextDecade's Rio Grande LNG export facility in
Texas and entered a supply agreement.
    In an op-ed, ADNOC Chief Executive Sultan Al Jaber also said
the confirmation of Chris Wright as U.S. energy secretary was "a
win for pragmatism, and an opportunity to reframe an energy
narrative that has been far too negative for far too long".
    He said growing emerging markets, the shift in energy
systems and the "exponential growth of artificial intelligence"
were mega-trends that would change the future and drive energy
demand.
    A diverse set of energy options is needed, including more
gas over the next decade to power data centres and more
chemicals to provide liquid coolants for such systems, he said.
    "That's the thinking behind Abu Dhabi's newest addition to
its energy portfolio: XRG is an international energy investment
company that will focus on projects across the spectrum, from
gas to chemicals to low carbon fuels to energy infrastructure,"
said Al Jaber, who was the president of COP28.
    ($1 = 0.9658 euros)

 (Reporting by Yousef Saba
Editing by Mark Potter)
 ((Yousef.Saba@thomsonreuters.com; +971562166204; https://x.com/YousefSaba))