XRG outlines five-year plan amid global LNG and gas demand

General view of the Borouge petrochemical facility at ADNOC’s Ruwais Industrial Complex in Ruwais, United Arab Emirates. DNOC’s energy investment arm XRG has gotten the go-ahead for its 5-year business plan, which seeks ‘accelerated growth and long-term value creation’. (Image: Reuters)

Abu Dhabi’s XRG, the international energy investment platform launched by ADNOC in November 2024, has unveiled a five-year strategy to grow its global gas and chemicals footprint and meet surging energy demand driven by artificial intelligence, digital infrastructure, and industrial expansion.

The company’s board of directors formally endorsed the 2025–2030 business plan on June 3, with a directive to build one of the top five integrated gas and LNG businesses in the world. The plan targets capacity of 20–25 million tonnes per annum (mtpa) by 2035 and includes a mandate to pursue mergers and acquisitions in upstream gas and LNG, particularly in North America.

“XRG is investing in the energy systems of the future – more integrated, more resilient, and responsive to global demand,” said Dr. Sultan Ahmed Al Jaber, Executive Chairman of XRG and ADNOC Managing Director and Group CEO. “With the Board’s endorsement of our five-year business plan, 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.”

Riding the global LNG growth wave

XRG’s plan comes as global LNG demand continues to rise. According to the International Gas Union, LNG trade volumes hit a record 401 million tonnes in 2023 and are forecast to exceed 700 mtpa by 2040, fueled by Asia’s industrial growth and Europe’s shift away from Russian pipeline gas. Flexible, lower-carbon LNG is viewed as a transitional fuel in global decarbonization efforts and a critical backstop for intermittent renewables.

XRG has already begun assembling the assets to support its global ambitions. In the past six months, the firm has announced partnerships or investments in Rio Grande LNG in the United States, Area 4 in Mozambique’s Rovuma Basin, Arcius Energy in Egypt, the Absheron gas field in Azerbaijan, and Offshore Block I in Turkmenistan.

These strategic moves align with industry trends. Major producers like QatarEnergy, Chevron, and ExxonMobil are expanding LNG portfolios to capitalize on projected supply gaps expected in the late 2020s.

Chemicals consolidation and industrial growth

In parallel, the XRG board backed a push to create a top-three global chemicals business, anchored by the proposed Borouge Group International and the acquisition of Germany-based Covestro, pending regulatory approval. This portfolio would position XRG strongly in polyolefins, performance materials, and future-facing specialty chemicals.

Chemicals are increasingly vital to energy-transition supply chains, from advanced plastics and coatings to battery components. XRG’s strategy positions it to benefit from long-term growth in industrial applications and emerging clean technologies.

Recognizing the exponential growth in power demand from AI infrastructure—especially in the U.S.—XRG will also scale its Energy Solutions platform. This includes investments in energy infrastructure and select low-carbon opportunities such as carbon capture, biofuels, and low-carbon hydrogen.

The strategy reflects growing awareness that AI’s computing power needs are pushing utilities and investors to rethink grid design and generation capacity. Some forecasts suggest global electricity demand from data centers and AI could triple by 2030, further tightening power markets and boosting demand for natural gas and dispatchable energy sources.

ADNOC backing

XRG’s leadership includes prominent names such as Blackstone President Jon Gray, OCI Global Executive Chair Nassef Sawiris, and Bernard Looney, former bp CEO. The company is wholly owned by ADNOC and boasts an enterprise value of more than $80 billion.

With the five-year plan now in motion, XRG intends to deploy capital with discipline, integrate newly acquired platforms, and expand across value chains that support global industrial and digital transformation.

The company’s strategy underscores a broader shift among state-backed energy investors toward diversified, forward-looking portfolios that balance hydrocarbon fundamentals with growth in chemicals, AI-linked infrastructure, and low-carbon alternatives. As traditional and new energy markets converge, XRG appears positioned to shape the next phase of global energy investment.