According to the Financial Times, ADNOC’s overseas investment platform, XRG, is reviewing 29 potential deals. The aim is to build a vertically integrated gas business spanning production, pipelines, processing plants, liquefaction facilities, regasification terminals and networks linking to end users.
XRG Chief Investment Officer Namir Siddiqui, who took office in January, told the FT that “diversifying the commodities portfolio is the goal,” adding that XRG’s business “will be built across the entire gas value chain.” He said the plan to invest tens of billions of dollars across the U.S. gas sector “remains unchanged.”
XRG is targeting two sources of demand in the U.S. market: rising global LNG demand and growing domestic gas demand driven by electricity needs from data centers. It is considering a range of approaches, including control acquisitions, drilling joint ventures and minority-stake investments.
ADNOC has already taken a stake in the Rio Grande LNG project in Texas and increased its holding in a follow-on phase, positioning that investment as a base for broader expansion. But entry will not be easy. Major players are already established in the U.S. LNG market, and lenders have been cautious about new investments amid concerns about oversupply.
Martin Houston, chairman of Omega Oil and Gas, told the FT that XRG has the financial capacity and determination to pursue big goals, but said a fully integrated gas business is highly complex and would take years.
* This article has been translated by AI.
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