Latest news with #Adnoc
The National
4 hours ago
- Business
- The National
Abu Dhabi's XRG targets LNG and gas capacity of up to 25m tonnes a year by 2035
Adnoc's global energy investment arm XRG aims to have a gas and LNG business with capacity of between 20 to 25 million tonnes per annum by 2035 as it looks to scale up its operations globally. XRG's board, which includes Adnoc group managing director and chief executive Dr Sultan Al Jaber, former BP chief executive Bernard Looney and Blackstone's Jon Gray, approved a five-year business plan for the company on Monday. 'XRG is investing in the energy systems of the future – more integrated, more resilient, and responsive to global demand,' Dr Al Jaber, who is also the executive chairman of XRG, said. 'We are scaling platforms in gas, chemicals and energy solutions to drive long-term value and ensure energy remains a catalyst for sustainable growth and development.' XRG was launched last year as an international lower-carbon energy and chemicals investment company, with an enterprise value exceeding $80 billion. In December, President Sheikh Mohamed endorsed the appointment of the board of directors for the new unit. Other members of the board include Mohamed Alsuwaidi, UAE Minister of Investment and managing director and chief executive of Abu Dhabi's holding company ADQ, and Nassef Sawiris, the executive chair of OCI Global. The board 'supported the assessment of potential upstream gas M&A and LNG opportunities to strengthen its North American gas position", the statement said. Last month, the UAE made an announcement to increase the value of its investments in the US energy sector to $440 billion by 2035, from the current $70 billion, during US President Donald Trump's visit to the Gulf countries. That is part of the UAE's plan to invest $1.4 trillion in the country. XRG bought a stake in NextDecade's Rio Grande liquefied natural gas export facility in Texas last year along with other acquisitions in Mozambique and Turkmenistan. The board also endorsed the 'company's ambition to create a top-three global chemicals platform", the statement said. 'Subject to respective regulatory approvals, the proposed formation of Borouge Group International and the proposed acquisition of Covestro anchors an industry-leading portfolio across polyolefins, performance materials, and future speciality segments.' In December, XRG announced the acquisition of the German chemicals company Covestro for an enterprise value of €14.7 billion ($15.3 billion). In March, Adnoc also agreed to terms of a binding agreement with Austria's OMV to merge their polyolefins business and create a $60 billion Borouge Group International. The board also directed XRG through its 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". That comes amid growth in AI-linked power demand, particularly in the US, the statement added.
The National
7 hours ago
- Business
- The National
Abu Dhabi's XRG targets LNG and gas capacity of up to 25m tonnes per annum by 2035
Adnoc's global energy investment arm XRG aims to have a gas and LNG business with capacity of between 20 to 25 million tonnes per annum by 2035 as it looks to scale up its operations globally. XRG's board, which includes Adnoc group managing director and chief executive Dr Sultan Al Jaber, former BP chief executive Bernard Looney and Blackstone's Jon Gray, approved a five-year business plan for the company on Monday. 'XRG is investing in the energy systems of the future – more integrated, more resilient, and responsive to global demand,' Dr Al Jaber, who is also the executive chairman of XRG, said. 'We are scaling platforms in gas, chemicals and energy solutions to drive long-term value and ensure energy remains a catalyst for sustainable growth and development.' XRG was launched last year as an international lower-carbon energy and chemicals investment company, with an enterprise value exceeding $80 billion. In December, President Sheikh Mohamed endorsed the appointment of the board of directors for the new unit. Other members of the board include Mohamed Alsuwaidi, UAE Minister of Investment and managing director and chief executive of Abu Dhabi's holding company ADQ, and Nassef Sawiris, the executive chair of OCI Global. The board 'supported the assessment of potential upstream gas M&A and LNG opportunities to strengthen its North American gas position", the statement said. Last month, the UAE made an announcement to increase the value of its investments in the US energy sector to $440 billion by 2035, from the current $70 billion, during US President Donald Trump's visit to the Gulf countries. That is part of the UAE's plan to invest $1.4 trillion in the country. XRG bought a stake in NextDecade's Rio Grande liquefied natural gas export facility in Texas last year along with other acquisitions in Mozambique and Turkmenistan. The board also endorsed the 'company's ambition to create a top-three global chemicals platform", the statement said. 'Subject to respective regulatory approvals, the proposed formation of Borouge Group International and the proposed acquisition of Covestro anchors an industry-leading portfolio across polyolefins, performance materials, and future speciality segments.' In December, XRG announced the acquisition of the German chemicals company Covestro for an enterprise value of €14.7 billion ($15.3 billion). In March, Adnoc also agreed to terms of a binding agreement with Austria's OMV to merge their polyolefins business and create a $60 billion Borouge Group International. The board also directed XRG through its 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". That comes amid growth in AI-linked power demand, particularly in the US, the statement added.
Trade Arabia
11 hours ago
- Business
- Trade Arabia
Adnoc Gas joins MSCI Emerging Market Index
Adnoc Gas will be the largest addition to the Index by market capitalisation and joins Adnoc Distribution and Adnoc Drilling which were added to the benchmark in 2021 and 2024, respectively. The company's inclusion follows its successful $2.84 billion marketed offering of 3.1 billion shares in February, which increased the number of shares available to the public by 80% and helped the stock successfully meet key eligibility criteria for entry into the Index. This marks a significant milestone in the Adnoc Gas's ongoing efforts to enhance its global investment profile, attract a broader and more diversified investor base and improve liquidity of its shares. Through their inclusion in the MSCI Index, the three Adnoc Group companies collectively raise both Adnoc's and the Abu Dhabi Securities Exchange's (ADX) global investment profile, while enhancing liquidity in the UAE market and further cementing the UAE's position as an attractive destination for foreign investment. As with Adnoc Distribution and Adnoc Drilling's addition to the Index, Adnoc Gas experienced a surge in trading on the final day before its index inclusion, attracting $469 million in capital inflows. The inclusion of Adnoc Gas in the Index also marks another milestone in Adnoc's efforts to foster growth of the UAE's capital market, which began in 2017 with the public listing of Adnoc Distribution on the ADX. Since then, Adnoc has brought another five of its subsidiaries to the public market, with a current combined market cap of around $140 billion.
The National
6 days ago
- Business
- The National
Tabreed optimistic data centres will adopt district cooling amid sustainability push
Abu Dhabi-based National Central Cooling Company, also known as Tabreed, is optimistic that power-hungry data centres will soon tap district cooling services, which offer a sustainable alternative, its chief executive has said. The utility's geothermal power-fed district cooling technology with its 'inexhaustible source' will be an appealing option for data centres, which consume massive amounts of energy and generate a lot of heat, Khalid Al Marzooqi told The National at the World Utilities Congress in Abu Dhabi on Wednesday. Asked whether data centres will be game-changing for district cooling, he said: 'Well, we hope so.' Tabreed began using geothermal energy in December 2023 when it launched G2Cool in Masdar City, in collaboration with energy major Adnoc. 'When we started [the use of] geothermal [energy], we were targeting data centres because we knew that companies like Google and Amazon need … green data centres with the renewable energy sources,' Mr Al Marzooqi said. 'Since [data centres] don't have the ability to generate power and [there] are other players in the market to provide that, the option would be to go with geothermal. This is a great source of energy.' Data centres are mushrooming globally amid the boom in artificial intelligence and machine learning, which requires the processing of massive amounts of data. Increasingly, more sustainable and eco-friendly systems – including those powered by wind, solar and water – are being used by the technology industry to make data centres more efficient, in addition to reducing emissions and being able to recycle heat waste into producing more electricity. Unlike renewable sources such as wind or solar, geothermal energy is not bound by the availability of resources and 'it's [available] 24/7 all year round', Mr Al Marzooqi said. 'You have a typhoon, it doesn't matter, because geothermal is a subterranean source of energy. 'All it needs is just simply scaling it up so the option is there now for data centres … it plays very well with the narrative we had two years ago when we started [G2Cool]". Tabreed is also keeping its options open for international expansion. At the moment, it is focusing on Asia, a market that Mr Al Marzooqi said is 'very challenging' owing to the lack of knowledge about district cooling and regulations. 'The concept of district cooling is very small and minor, and the whole concept of a large district cooling company is not there, so you need to educate the customers. And … there's a bit of a risk entering a market which is unregulated,' he said. The global district cooling market was valued at about $26.8 billion last year, with the Middle East and Africa having the lion's share at 34.6 per cent, data from Fortune Business Insights shows. The market is projected to rise by about 80 per cent to more than $48 billion by 2032. 'For the time being we are looking at maybe the private sector [in the UAE], something that is large enough because we need an anchor load,' Mr Al Marzooqi said. 'The UAE and the [Middle East] region is a large market, and [that's] where my main focus would be, more than international.'
Trade Arabia
27-05-2025
- Business
- Trade Arabia
Adnoc Drilling secures $1.15bn contract for two jack-up rigs
Adnoc Drilling Company has received a $1.15-billion, 15-year contract for two jack-up rigs from Adnoc Offshore in support of its growing offshore operations. The contract will follow existing agreements, bringing accretive rates that generate long-term revenue and attractive returns, a statement said. Abdulrahman Abdulla Al Seiari, Adnoc Drilling CEO, said: 'This new contract is a clear vote of confidence in ADNOC Drilling's technical leadership, operational excellence and long-term value creation. By integrating artificial intelligence (AI), automation and digitalization capabilities, the two new jack-up rigs, our newest and most advanced jack-up rigs, will ensure superior efficiency and performance for our client Adnoc Offshore. With this contract securing operations until 2040 and beyond, and providing strong, resilient and predictable returns, we are not only reinforcing our role in achieving Adnoc's production capacity milestones but also driving sustainable long-term growth for our shareholders.' With 47 offshore rigs, one of the largest operational offshore fleets in the world, Adnoc Drilling is uniquely positioned to support the UAE's long-term energy strategy. The scale of the company's offshore fleet ensures both reliability and flexibility, enabling the rapid deployment of rigs to meet growing demand while maintaining operational excellence and safety. Tayba Abdul Rahim Al Hashemi, Chief Executive Officer of Adnoc Offshore, said: 'In the past month, Adnoc Offshore has awarded long-term contracts worth c. $3.6 billion to Adnoc Drilling to safely accelerate our production capacity growth plans. Adnoc Drilling's advanced fleet of jack-up and island rigs, market leading integrated drilling services and cutting-edge technologies are critical enablers to deliver Adnoc's ambitious strategy. This partnership will help us to sustainably meet the world's growing energy demands and maximize value for shareholders for decades to come.' The new rigs represent the latest generation of jack-up rigs and have been expertly prepared for operations at the Lamprell shipyard in Sharjah. This is aligned with the Company's fundamental commitment to not only deliver high-quality solutions but drive In-Country Value and contribute to the UAE's economic development by fostering local partnerships and prioritizing homegrown innovation. The rigs will leverage advanced digitalisation, real-time data analytics and AI as Adnoc Drilling continues to deploy the technology throughout its fleet to improve safety, efficiency and maximise asset value and operational uptime. These long-term contracts are a clear demonstration of the resilience, stability and long-term visibility offered by Adnoc Drilling's business model offering attractive returns. Multi-year engagements such as these, create a solid foundation for recurring revenue and earnings growth, supporting the Company's ability to deliver resilient, sustainable and growing returns to shareholders.
