Abu Dhabi’s newest energy powerhouse, XRG, has announced a bold five-year strategy to position itself among the world’s leading players in natural gas, LNG, and low-carbon energy. Backed by the Abu Dhabi National Oil Company (ADNOC) and valued at approximately $80 billion, the company is aiming for transformative growth as it sets its sights on becoming a major global investor in sustainable energy solutions.
Launched just seven months ago, XRG is rapidly emerging as a central pillar in ADNOC’s long-term energy diversification agenda. Its newly approved business plan, covering the period from 2025 to 2030, outlines an aggressive push to more than double the company’s asset base and significantly expand its international footprint.
At the heart of XRG’s strategy is a goal to rank among the world’s top five players in natural gas and liquefied natural gas (LNG), targeting a capacity of 20 to 25 million tonnes per annum by 2035. The company is actively exploring upstream gas and LNG acquisition opportunities, particularly in North America, as it builds a diversified portfolio of assets across key geographies.
XRG has already planted strategic flags across the globe with deals in the U.S. (Rio Grande LNG), Mozambique (Area 4 in the Rovuma Basin), Egypt (Arcius Energy), Azerbaijan (Absheron field), and Turkmenistan (Offshore Block I).
“Our strategy is about scale, speed, and smart capital allocation,” said Sultan Al Jaber, XRG’s Executive Chairman. “We are building a future-focused platform that keeps energy as a force for sustainable growth, balancing energy security, affordability, and climate action.”
Beyond gas and LNG, XRG is setting its sights on becoming a top-three global chemicals business. Its strategic roadmap includes the integration of high-value chemical assets, with a particular focus on specialty and performance materials that align with a lower-carbon future.
In a landmark deal announced in late 2024, ADNOC agreed to acquire German chemical manufacturer Covestro for €14.7 billion (US$16.7 billion). That transaction, set to close in the second half of 2025, will significantly bolster XRG’s downstream capabilities once the asset is transferred post-merger.
XRG is also poised to become a major shareholder in the $60 billion polyolefins joint venture between ADNOC and Austria’s OMV. Upon completion of the deal, ADNOC’s stake in the newly formed Borouge Group International, uniting Borealis and Borouge, will move under XRG’s management.
XRG’s leadership includes high-profile industry figures, most notably Bernard Looney, the former CEO of BP, who brings deep experience in oil and gas transformation and a strong track record in climate-aligned business development.
The board’s decision to green-light the 2025–2030 strategy underscores confidence in XRG’s ability to deliver both economic returns and environmental progress.
While hydrocarbons remain a central pillar, XRG’s vision extends well into the energy transition. The company will continue to develop opportunities in emerging segments such as carbon capture and storage (CCS), low-carbon hydrogen, and sustainable fuels like biofuels, sectors that offer both environmental benefits and attractive financial returns.
XRG’s hybrid model, anchored in hydrocarbons but engineered for transformation, is designed to meet surging global demand for cleaner, more reliable energy amid rising geopolitical complexity and regulatory pressure.
With a portfolio that bridges traditional energy, chemicals, and cutting-edge transition technologies, XRG is poised to become a formidable global player. Its strategy reflects a broader shift in the Gulf: from resource extraction to strategic investment in the energy systems of the future.
By blending state-backed stability with market-savvy expansionism, XRG is not only reshaping its own future but also helping to redefine the role of Middle Eastern energy firms in a decarbonising world.
As the energy transition unfolds unevenly across regions, XRG’s diversified approach may prove to be its greatest strength, offering a rare combination of legacy expertise and forward-looking ambition.