XRG is a relatively new player in Abu Dhabi. The company Adnoc launched XRG in November 2024 with an enterprise valuation exceeding $80 billion and the goal of accelerating its international expansion. Today, XRG positions itself as Adnoc's international investment company, stating that its valuation exceeds $150 billion, with investments spanning natural gas, chemicals, and energy solutions.
The non-obvious aspect is the reason for combining these diverse business areas. A gas project in the US, an ammonia producer, a German advanced materials company, and investments in energy infrastructure might seem like disparate bets on individual industries. Mohammed Al Aryani, President of International Gas at XRG, explains that the company views them as parts of one, much longer chain.
Al Aryani told Khaleej Times: 'People often look at our portfolio and see a gas asset in one market, a chemical business in another, and energy infrastructure somewhere else. We look at it differently. What connects them is a very simple question: how will the world produce, move, and use energy and materials over the next 20 or 30 years and beyond?'
An example of this understanding is ammonia. Most people associate it, if they associate it at all, with fertilizers. Fertiglobe, in which XRG holds a majority stake, produces ammonia and urea used in agriculture. Covestro, a German advanced materials company acquired by XRG last year, also uses ammonia as a raw material in chemical production.
These chemicals are subsequently turned into materials used in insulation, furniture, automobiles, and other products far removed from the original molecule. Al Aryani emphasized: 'The phrase we often use is 'from molecule to customer.' We are not interested in owning isolated assets. We are interested in creating positions across the entire value chain where elements mutually reinforce each other.'
There are early attempts to test whether these connections can work in practice. In February, Covestro, Fertiglobe, and the Abu Dhabi chemical company Ta’ziz signed a memorandum of understanding to study the supply of ammonia from Fertiglobe to Covestro facilities in China and the US, as well as long-term options for Europe and broader cooperation in the UAE.
Several months later, Covestro announced the start of a feasibility study for potential new MDI production in the UAE. MDI is used to manufacture rigid polyurethane foam, which is commonly found in building insulation and household appliances. This study examines whether the plant can benefit from the existing partnership with Fertiglobe and Ta’ziz.
Artificial intelligence may seem distant from fertilizers or natural gas. However, for XRG, the connection starts with what is behind the screen. Al Aryani noted: 'For most people, AI is a technological story. For us, it is also an energy story.'
He explained that 'every new data center requires electricity. It requires infrastructure. It requires cooling systems. It requires advanced materials. When you scale this globally, the impact becomes very significant.' A user asking a question to an AI chatbot sees software; however, behind that answer are servers inside the data center that must be powered and cooled, connected to the electrical grid, and located in a physical building.
According to the International Energy Agency (IEA), data centers consumed about 485 terawatt-hours of electricity globally in 2025. Under the IEA's baseline scenario, this consumption is expected to roughly double to 950 TWh by 2030, with data centers accounting for about three percent of global electricity demand. The electricity consumption of AI-focused data centers is projected to triple over the same period.
These figures are projections, and the IEA itself points to significant uncertainty. The pace of data center construction may be limited by grid connectivity, transformer shortages, gas turbines, chip supplies, and the economics of AI investment. At the same time, the electricity consumption for individual AI tasks is decreasing as computing efficiency increases.
Increased use of AI does not directly lead to increased natural gas consumption. The IEA expects renewable energy sources to provide nearly half of the additional electricity needed by data centers in the coming years, with natural gas, nuclear power, and other sources also participating.
XRG's thesis is broader than betting on a single energy source. If digital infrastructure continues to expand, more electricity will need to be generated and transported, and more data centers, cooling systems, and physical infrastructure will need to be built. Gas remains an important part of this strategy. By 2035, XRG aims for a capacity of 20–25 million tons of gas and LNG per year. According to the company, it already holds stakes in all five LNG lines under construction at the Rio Grande LNG project in Texas in the US.
Al Aryani asserts that the answer is negative. 'We start by understanding where we believe the long-term demand is heading, but defining growth markets is only the beginning,' he said.
The company states that potential investments are tested against expected returns, strengthening existing businesses, asset quality, and having opportunities or positions that are difficult to replicate. He added: 'And finally, we ask ourselves a simple question: can we create more value through ownership than the business itself could? This is an important distinction. We are not just collecting an investment portfolio. We are creating platforms and ecosystems in the gas, chemicals, and energy solutions sectors that can benefit from scale, connectivity, and shared opportunities.'
He concluded: 'For us, it is never just a question of whether an asset is available or attractive in price. The real question is whether it advances our strategy, strengthens our competitive position, and creates value in the long term. If the answer is yes, we will participate actively. If not, we are fully prepared to walk away.'
For an observer from the UAE, there is another question behind XRG's international expansion: what ultimately brings back home the ownership of foreign enterprises and assets? Al Aryani believes that the benefit must go beyond investment profit. 'As we grow internationally, we bring capital, technology, partnerships, and expertise into our ecosystem,' he stated. 'This strengthens our industrial base, creates opportunities for UAE businesses, and deepens our connection to global markets.'
The Covestro feasibility study in the UAE serves as an early example of what this could mean. If the plant is eventually approved, it could create a direct industrial link between the international company acquired by XRG and the chemical industry and infrastructure already developing in Abu Dhabi.
XRG is making a long-term bet that growing populations, industry, and AI will require more energy, infrastructure, and materials. The most immediate test is whether its assembled portfolio can transform these individual investments into functioning commercial links, and whether some of this value will ultimately return to the UAE.