Market Chatter: Abu Dhabi National Oil to Invest 'Tens of Billions' in US Gas Market
Abu Dhabi National Oil will invest "tens of billions of dollars" into the US gas value chain, with 29 potential deals under evaluation, the Financial Times reported Tuesday, citing Nameer Siddiqui, chief investment officer of the company's investment arm XRG.XRG aims to diversify its commodity exposure after the US-Iran conflict disrupted the energy business, while capitalizing on the rising liquefied natural gas demand globally and in the US, Siddiqui told the news agency in an interview.Siddiqui reportedly said that the company was evaluating controlled transactions, drilling joint ventures, and minority stakes.XRG intends to penetrate the entire gas value chain, with projects spanning gas extraction to construction of pipelines, processing plants, and liquefaction facilities. Developments could also include re-gas facilities and pipelines to destination countries.The company wants to be "bold" with its investments in the US energy market, according to Siddiqui.Relative to other companies that failed to build integrated LNG projects in the country, XRG will leverage having a single shareholder with resources and long-term outlook.Alex Munton, director of global gas at Rapidan Energy, as cited by Financial Times, said capital-rich Middle Eastern investors have an advantage in capturing the US gas market because banks typically shun this sector due to oversupply concerns.However, XRG will have to find its way into the "already-established market" following a surge in developments after Russia's invasion of Ukraine boosted demand for US LNG, and due to strong backing from the Trump administration, Munton reportedly said.XRG holds a stake in the Rio Grande LNG plant in Texas.Outside the US, the company has acquired assets in Egypt, Mozambique, and Azerbaijan. It was also interested in Australia's LNG projects, the news agency reported, although it had withdrawn its $19-billion bid for Australian oil and gas firm Santos in September 2025.XRG has so far focused its biggest deals in the chemicals industry, following the merger with Austria's OMV to form Borouge International and the acquisition of Germany's Covestro worth 14.7 billion euros ($17.19 billion).Meanwhile, it will cease investing in low carbon energies due to low demand, and will instead focus on gas projects, according to XRG's energy solutions president Michele Fiorentino, as cited by Financial Times.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)