XRG targets gas, LNG capacity of 20-25mln tons per year by 2035
XRG, the international investment arm of Abu Dhabi National Oil Company, said on Tuesday it aims to have a gas and LNG business with capacity of between 20 million and 25 million metric tons per annum by 2035.
XRG's board, which includes former BP CEO Bernard Looney and Blackstone's Jon Gray, approved a five-year business plan that aims to create an integrated gas and LNG business that included the capacity target, XRG said in a statement.
The board also "supported the assessment of potential upstream gas M&A and LNG opportunities to strengthen its North American gas position," XRG said.
ADNOC Chief Executive Sultan Al Jaber, who is also XRG's executive chairman, said during U.S. President Donald Trump's visit to Abu Dhabi last month that the enterprise value of ADNOC's energy investments in the U.S. would rise to $440 billion in the next decade from $70 billion.
He also said in March that XRG would make a significant investment in U.S. natural gas in coming months.
ADNOC had agreed in October to buy German chemicals maker Covestro for 14.7 billion euros including debt. Jaber later said it would sit under XRG. XRG also reached a deal in March with Austria's OMV to merge their petrochemicals businesses Borouge and Borealis to create a firm with an enterprise value of $60 billion.
The board on Tuesday "endorsed the company's ambition to create a top three global chemicals platform," XRG said.
XRG had said that along with gas and chemicals, low carbon energies would be its other major focus.
Its statement on Tuesday, pointing to artificial intelligence-linked demand for power, particularly in the U.S., said the board directed XRG's Energy Solutions platform to "expand its investments across the energy value chain while continuing to develop select opportunities in carbon capture and storage and low-carbon fuels such as biofuels and low-carbon hydrogen that align with attractive return profiles."
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