Adnoc is planning major investments in the US natural gas sector through its global investment arm XRG, seeking to diversify its portfolio as the Iran war disrupts global energy markets.
The Abu Dhabi company is planning to invest tens of billions of dollars, the Financial Times reported on Tuesday. Nameer Siddiqui, the new chief investment officer of XRG, said the company was assessing 29 potential deals to help create a vertically integrated global gas business, whereby the company controls all stages of its supply chain, the FT report said.
XRG is evaluating controlled transactions, joint ventures in drilling and minority stakes as part of its plan to serve growing global demand for liquefied natural gas (LNG) and supply the US market with gas to power data centres, Mr Siddiqui added.
When contacted by The National, the XRG representative said: “The current environment has reinforced our approach, strengthening our ambition to deploy resilient capital across the global energy value chain, anchored in an Emirati mindset defined by long-term focus, resilience and partnership.”
The comments come after XRG increased its stake by 7.6 per cent in the Rio Grande LNG project in the US in January, following its initial 11.7 per cent stake in the project’s first three trains last September.
XRG said it is acquiring the stake in trains 4 and 5 from an acquisition vehicle of Global Infrastructure Partners, which is a part of asset manager BlackRock. Financial details have yet to be disclosed.
XRG was founded in 2024 as an international lower-carbon energy and chemicals investment company, with an enterprise value exceeding $80 billion.
The company has been actively increasing operations globally and plans to double its asset value over the next decade, capitalising on the energy transition, artificial intelligence and the rise of emerging economies.
In November, XRG signed an initial agreement with Argentina’s YPF and Italy’s Eni to develop an integrated LNG project in the South American nation.
Last year, it signed a non-binding agreement to acquire a stake in Azerbaijan's Southern Gas Corridor company. The investment supports XRG’s regional strategy in the Caspian Sea and will support the delivery of gas resources from Azerbaijan to the European market, the company said at the time.
In March, XRG and Austrian company OMV finalised the process to form Borouge Group International, in a move expected to help the UAE become an increasingly important player in the global chemical sector.
XRG has also made investments in Mozambique’s Rovuma Basin, Block-1 Turkmenistan, Arcius Energy in Egypt, and Absheron in Azerbaijan.
