XRG is reportedly evaluating 29 gas deals as ADNOC targets LNG expansion and growing demand from US data centres.
Dubai: Abu Dhabi National Oil Company’s plan to invest tens of billions of dollars in the US natural gas sector signals a broader shift in Gulf energy strategy, with its international investment arm XRG building a gas platform aimed at meeting both global LNG demand and the rapidly increasing power requirements driven by artificial intelligence.
The strategy, reported by the Financial Times and cited by Reuters, would position XRG more deeply within one of the world’s most significant energy markets, at a time when natural gas is increasingly viewed both as a transition fuel and a growth driver. The company is reportedly assessing 29 potential deals as it seeks to build a vertically integrated global gas business, according to Nameer Siddiqui, XRG’s newly appointed chief investment officer.
Siddiqui told the Financial Times that the company is targeting the entire gas value chain—from “getting gas out of the ground, owning the pipelines and processing plants, all the way through to liquefaction facilities to put gas on water, and potentially even owning regasification facilities and pipelines to end users in destination markets.”
Gas emerges as a strategic growth segment
Global energy markets are being pulled in different directions by the Iran conflict, strained shipping routes, and rising demand for secure fuel supplies. At the same time, the rapid expansion of data centres in the US is increasing electricity demand, strengthening the long-term outlook for gas producers and LNG investors.
XRG is not focusing solely on LNG cargoes or export capacity, but on the broader infrastructure that moves gas from production fields to end users. This approach can help improve cost efficiency, strengthen supply security, and reduce exposure to price cycles, while also expanding Abu Dhabi National Oil Company’s role in the global gas trade.
Siddiqui said the company’s strategy is to diversify XRG’s commodity exposure by operating across the full gas value chain, according to the FT report. Potential investments could include controlled transactions, drilling joint ventures, and minority stakes, enabling the company to scale its presence without depending on a single acquisition route.
When asked about XRG’s ability to pursue such investments amid geopolitical uncertainty, Siddiqui said the commitment remains firm. “This is unwavering, although obviously we will only do that under the right return expectations. The US is a market where we want to be bold,” he said.
US LNG is already a key focus area for XRG.
The company has expanded its exposure to the Rio Grande LNG project in Texas, including a recent move in January to acquire an additional 7.6% stake in Trains 4 and 5. This followed an earlier 11.7% investment in the first three trains. Each of the two additional trains is expected to deliver around 6 million tonnes per annum of LNG capacity.
The deal strengthens XRG’s position in one of the world’s largest LNG export facilities at the Port of Brownsville and highlights how the company is using US infrastructure as a foundation for its broader gas strategy. The stake in Trains 4 and 5 is being acquired from an acquisition vehicle of Global Infrastructure Partners, part of BlackRock, although financial terms were not disclosed.
The investment also aligns with Abu Dhabi National Oil Company’s wider ambition to develop XRG into a global energy investment platform. Launched in late 2024 with an enterprise value of over $80 billion, XRG is mandated to invest across natural gas, chemicals, and lower-carbon energy. The company says its strategy is shaped by three major demand drivers: the energy transition, the rise of artificial intelligence, and growth in emerging economies.
