By Christian Moess Laursen


Adnoc launched a new unit to invest in natural gas, chemicals and low-carbon energies, as it aims to capitalize on growing international demand and transform into a fully integrated energy company.

Abu Dhabi National Oil Co., known as Adnoc, said Wednesday that the investment unit, called XRG, will have an enterprise value of $80 billion. XRG will support Adnoc's international growth with a focus on transformational investments across natural gas, chemicals and low-carbon energy solution, the company said.

These three market form the pillars of Adnoc international growth strategy as it aims to become a key energy and energy products supplier globally, betting particularly on rising demand in China, India and Japan.

Through its Ruwais project, which was greenlit in June, it will more than double U.A.E.'s export capacity of liquefied natural gas as it pushes into global markets.

Adnoc, which consists of a raft of companies, also oversees a network of crude-oil refining facilities and trading and distribution operations, and has expanded into areas such as hydrogen production.

More recently, the company has focused on dealmaking. Last month, it struck a $13 billion-plus deal to buy Germany's Covestro, a big bet on chemicals as part of its efforts to transform into a fully integrated energy company.

XRG aims to more than double its asset value of the next decade, Adnoc said. It will do so by capitalizing on demand for low-carbon energy and chemicals driven by the transformation of energy, the rise of artificial intelligence, and the growth of emerging economies.

"In line with our board mandate to prioritize transformational growth, XRG marks a bold new chapter for Adnoc," Chief Executive Sultan Ahmed Al Jaber said in Wednesday's statement.

XRG will formally begin its activities in the first quarter of 2025.


Write to Christian Moess Laursen at christian.moess@wsj.com


(END) Dow Jones Newswires

11-27-24 0743ET