XRG, Adnoc's global energy investment arm, reviewed the implementation of its five-year business plan on Monday during a board meeting in New York, the company's first outside the UAE.
The board meeting included an update on XRG's international gas platform, focusing on its growing presence in the US, highlighted by the acquisition of an 11.7 per cent stake in Phase 1 of the Rio Grande LNG project in Texas. The Abu Dhabi based XRG said last week that the acquisition, first announced in 2024, marked its first natural gas investment in the US.
The project is under construction with Trains 1-3 in progress and a final investment decision on a fourth train.
The board also reviewed the progress of ExxonMobil's Baytown low-carbon hydrogen and ammonia project in Texas, in which XRG holds a 35 per cent stake, as well as the firm's plans to invest in US energy infrastructure amid growing demand from artificial intelligence and digitalisation.
“In under a year, XRG has strategically deployed capital through a responsible and disciplined investment approach, targeting long-term value-creation opportunities across the energy value chain,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, managing director and group chief executive of Adnoc and executive chairman of XRG.
“With clear direction from our board, we’re building on strong momentum – focusing on investment-friendly jurisdictions, including the US, which are aligned with XRG’s mission to maximise energy value.
“By partnering with public and private entities, we’re positioning XRG to be at the forefront of powering global energy systems to drive sustainable economic growth,” he said.
The US is expected to contribute to roughly 30 per cent of incremental global LNG supply through 2050, XRG said.
XRG has also made four transactions in Africa and Asia, as well as two major deals that would position it as one of the top three chemicals investors in the world.
XRG’s chemicals platform aims to become a top-five global player, producing and delivering chemical and speciality products to meet a projected 70 per cent increase in global demand by 2050, Adnoc said last year.
XRG was launched in November 2024 with an enterprise value of more than $80 billion. Adnoc moved its US investments to it in February.
Earlier this month, a consortium led by XRG withdrew its offer to buy Santos, Australia's second-largest gas producer. XRG said a combination of factors affected the consortium’s assessment of its indicative offer.
In June, the consortium, which includes Abu Dhabi's sovereign wealth fund ADQ and global investment firm Carlyle, made a $19 billion indicative offer to buy Santos.
