Adnoc's XRG Pursues M&A Opportunities in Europe, Eyes 20-25 Million Tonnes LNG Capacity by 2035

Gate News message, April 16 — XRG, the global investment arm of state-backed Abu Dhabi National Oil Company (Adnoc), is exploring merger and acquisition opportunities in Europe, according to Rainer Seele, president of XRG's chemicals platform. The company previously completed a three-way merger to establish Borouge Group International, a $60 billion petrochemical giant with the world's fourth-largest nameplate production capacity (total installed production capacity of a facility).

Seele stated that XRG remains positive about Europe's long-term outlook despite widespread investor skepticism. Higher natural gas prices have pressured European petrochemical manufacturers' profitability, forcing production cutbacks. In March, Adnoc suspended operations at the Ruwais refinery as a precautionary measure following a drone strike linked to the Iran conflict that caused a fire in the vicinity. Most products will be stored until the conflict concludes, though some shipments have already departed from Ruwais.

XRG is targeting 20-25 million metric tonnes per year of LNG (liquefied natural gas) capacity by 2035. The Adnoc subsidiary, established to pursue acquisitions in natural gas, chemicals, and energy sectors, previously acquired Germany's Covestro for $17 billion.