President Sheikh Mohamed has endorsed the appointment of the board of directors of Adnoc's new international investment unit XRG.
XRG was launched on November 27 as an international lower-carbon energy and chemicals investment company, with an enterprise value exceeding $80 billion.
The company underscores Adnoc's commitment to accelerating its international growth “in response to the significant global energy investment opportunity”, state news agency Wam said.
It will focus on “addressing megatrends, including the exponential growth of artificial intelligence, the transformation of global energy systems, and the rising energy demands of emerging economies, where population growth and urbanisation are reshaping energy markets”, it said.
The company, while “initially focused on the energy, low carbon and chemicals sectors, is committed to delivering innovative, sustainable and disruptive solutions that create long-term value for partners, customers and stakeholders”, said Dr Sultan Al Jaber, executive chairman of XRG.
It will also play a key role in “supporting the accelerated need for energy in AI”, said Dr Al Jaber, who is also Adnoc's managing director, group chief executive and Minister of Industry and Advanced Technology.
Mohamed Alsuwaidi, Minister of Investment and managing director and chief executive of Abu Dhabi-based investment and holding company ADQ, will be among the members of XRG's board.
He will be joined by Ahmed Al Mazrouei, chairman of the President’s Office for Strategic Affairs and chairman of the Abu Dhabi Executive Office, Jasem Al Zaabi, chairman of the Abu Dhabi Department of Finance, Jon Gray, president and chief operating officer of Blackstone, Nassef Sawiris, executive chairman of OCI Global, and Bernard Looney, chairman of Prometheus Hyperscale and the former boss of BP.
XRG will also invest in natural gas projects to meet the growing demand for the fuel and its supercooled form, liquefied natural gas.
Adnoc, which aims to achieve net zero by 2045, reported a reduction of 6.2 million tonnes of carbon dioxide equivalent in scope 1 (direct) and scope 2 (indirect) emissions last year. The reduction included 4.8 million tonnes from using clean grid energy from solar and nuclear power, Adnoc said in its 2023 sustainability report.
XRG will start operations in the first quarter of next year. It will also host a global strategy event next year.
Its “diversified and flexible approach” ensures it can strategically pivot to identify and invest in high-return opportunities, initially focusing on three growth platforms: international gas, global chemicals and low-carbon energies.
Its low carbon energies business will invest in clean energy solutions and technologies to reduce carbon emissions and drive economic growth during the energy transition.
The XRG board will work closely with its international partners “to create new opportunities and lasting value and socio-economic impact”, Dr Al Jaber said.
