DUBAI (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 (LON:BP) in Egypt, initially focused on gas.
ADNOC said in September it would acquire a 35% stake in a planned ExxonMobil 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.
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