Mar 7, 2025
Abu Dhabi National Oil Co. (Adnoc), the largest oil company in the United Arab Emirates, is gearing up for its first foray into the US natural gas sector. According to Bloomberg, Adnoc is actively pursuing acquisitions of natural gas producing fields in the US to further solidify its presence. This expansion aims to complement the company’s recent investments in chemical plants and liquefied natural gas (LNG) export facilities in the region.
Adnoc’s CEO, Sultan Al Jaber, is expected to detail the producer’s strategic investment focus, emphasizing a US-centric approach, during his upcoming address at the CERA Week energy conference in Houston. Following the conference, Al Jaber plans to visit Washington, DC for additional meetings pertaining to his dual roles at Adnoc and as the UAE’s Minister of Industry and Advanced Technology.
The move aligns with the broader trend of multinational companies seeking energy opportunities in the US, although Adnoc has not yet identified a specific acquisition target. Still, their interest underscores the company’s aggressive expansion strategy, as noted on the IndexBox platform. In recent years, Adnoc has been one of the most proactive energy dealmakers globally, acquiring assets across the US, Europe, and Africa. Notable deals include a stake in NextDecade Corp.’s LNG export project in Texas and a stake in Exxon Mobil Corp.‘s proposed hydrogen project, also in Texas.
This month, Adnoc, in partnership with OMV AG, set terms to create a chemicals conglomerate valued at over $60 billion, which includes the joint purchase of Nova Chemicals with facilities on the US Gulf Coast. By investing in gas-producing fields, Adnoc would gain essential resources for its chemical plants and LNG export infrastructures, potentially capitalizing on any upward trends in US gas prices.
Furthermore, last year, Adnoc launched XRG, a dedicated entity for pursuing international gas and chemical transactions, aiming to initial enterprise value of $80 billion to $160 billion within a decade. XRG is slated to manage Adnoc’s future US investments, ensuring a focused expansion in line with global energy demands.