Latest news with #XRG
The Age
3 hours ago
- Business
- The Age
Australia an energy target as Iran-Israeli war triggers global turmoil
'In the worst-case scenario in which the Strait of Hormuz is closed, it will affect both global LNG and oil markets by up to 20 per cent of their respective annual consumption,' Citi energy analysts said this week. 'Global LNG markets will be more vulnerable than oil to further escalation of Middle East tensions.' These Middle East petro states may be underpinned by oil sales, but LNG gives them much-needed diversification. And LNG assets far away from the region give them pricing and supply upside from any energy price spikes triggered by these conflicts and any related supply shocks. Santos could not be more tempting from a strategic point of view. It would give XRG a business far from the drama of the Middle East thanks to its assets in Australia, Papua New Guinea and Alaska and close to Santos' coveted Asian customers, which have a fast-growing appetite for LNG. And what would the Santos suitors make of Australia's comical industry, where operators get a lot of their gas royalty-free from Australians and then make a fortune selling it back to them as global prices surge? Santos is not the only local energy giant making a splash among the oil giants. Loading Woodside Petroleum boss Meg O'Neill was part of the Trump entourage on his recent trip through the Middle East. She signed up Saudi Aramco, the world's largest oil and gas producer, as a partner for Woodside's US projects. She was almost the only female in a group photo with Trump and Saudi Crown Prince Mohammed bin Salman. She was quoted in the official White House press release. 'Woodside and Aramco will explore global opportunities, including Aramco's potential acquisition of an equity interest in an LNG offtake from the Louisiana LNG project as well as exploring opportunities for a potential collaboration in lower-carbon ammonia,' she said. 'Lower-carbon' is the other major reason why these petro states are now pouring more money into LNG developments than oil. Loading Even the petro states realise LNG will have a longer shelf life than oil as the alleged 'transition fuel' to a green energy future. China's total crude oil consumption dropped last year and developing nations are expected to follow as they adopt the flood of cheap EVs China is churning out. But the future of the Santos bid is as uncertain as the outcome of the Israel/Iran conflict. The XRG consortium is conducting due diligence, and as both sides are cautioning, there is no certainty that a formal offer will emerge. Loading More importantly, there are many regulatory hurdles, including government approval if a concrete offer does emerge for what is a critical piece of Australian infrastructure. The issue of domestic gas reservation, to prevent taxpayers and local businesses from getting screwed by companies supplying Australia its own gas, will be an interesting part of any takeover negotiations, especially since Santos already supplies gas domestically. The fact that Santos is trading at something close to a $5 billion discount to the $30 billion cash being offered for its shares tells you plenty about how cautious the market is about the potential success of this deal.
Sydney Morning Herald
3 hours ago
- Business
- Sydney Morning Herald
Australia an energy target as Iran-Israeli war triggers global turmoil
It does not appear to be a coincidence that hours after Israel started raining bombs down on Iran, one of the embattled country's neighbours, Abu Dhabi, pounced with an audacious offer that Australian energy giant Santos could not refuse. After making two offers over a week in March, the suitors are now putting $36 billion cash on the table, including debt, for one of our gas sector giants. If successful, it would be the largest ever cash offer in Australia's corporate history. Abu Dhabi's state-owned oil company, the Abu Dhabi National Oil Company, the world's 12th largest oil company by production, is the major player behind the bid via its $US80 billion ($123 billion) overseas investment arm XRG. This business was launched last year with a mission to meet rising global demand for lower-carbon energy and to become one of the five biggest integrated global gas and LNG businesses. So why does a state, a part of the UAE, which is awash in oil, make such a huge bet on becoming a global LNG business? Loading There are two core reasons: geography and the green energy transition. The Israel-Iran conflict, and the threat of escalation if US President Donald Trump drags the US into it, will send global oil prices soaring for one key reason: any existential threat to Iran's leadership could lead to an effective blockade of the Strait of Hormuz. It is a crucial choke point in the global energy supply chain, and not just for oil. Middle East LNG exports are even more reliant on the strait than is oil, and there are fewer alternatives to shipping LNG through the strait.
AU Financial Review
16 hours ago
- Business
- AU Financial Review
Is Australia selling off its energy security to the UAE?
A scramble for gas access in an increasingly volatile and unpredictable global landscape has prompted one of the world's biggest petroleum producers, the Abu Dhabi National Oil Company, to lead a proposed $36.4 billion takeover of Australia's second-largest independent gas producer. The bidding consortium includes ADNOC's foreign investment arm XRG, which has a majority stake, as well as the sovereign wealth fund, Abu Dhabi Developmental Holding Company and American private equity giant The Carlyle Group. The deal will undergo scrutiny by the Foreign Investment Review Board, which will then make a recommendation to the treasurer for final approval. Santos has backed the planned bid.
Gulf Today
2 days ago
- Business
- Gulf Today
UAE, US enjoying a ‘powerhouse partnership', says Sultan Al Jaber
Dr. Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC, and Executive Chairman of XRG, called for energy, technology, finance and policy sectors to work in sync to meet the once-in-a-generation investment opportunity of artificial intelligence (AI). Delivering a keynote address in Washington DC at the ninth edition of the Atlantic Council Global Energy Forum to an audience of policymakers and industry leaders, Dr. Al Jaber described AI as the next stage of human evolution and emphasised that meeting its demands will require an equally transformative shift in energy policy, investment and infrastructure. 'The race for AI supremacy is not just about code-it's about gigawatts,' he said. 'Every AI breakthrough consumes more power. And right now, global energy systems are not ready.' He noted that the US alone may require 50-150 gigawatts of new capacity by 2030, dependent on the energy source - equivalent to the total consumption of dozens of major cities. To meet that challenge, Dr. Al Jaber outlined a system-wide roadmap-developed in partnership with XRG, MGX and the Atlantic Council-calling for fast-tracked permitting, modernised grids, and strategic investment in gas, nuclear, and renewables. 'You can't run tomorrow's technology on yesterday's grid,' he said. 'Permitting delays and supply chain bottlenecks are now threats to progress. Policy must help, not hold back.' Dr Al Jaber highlighted that the size of the opportunity is huge and the key to unlocking it is partnership. He explained that this is why the UAE and the US are enjoying a 'powerhouse partnership' across every sector. 'For us, the United States is not just a partner-it's an investment imperative,' Dr. Al Jaber added. 'US companies are among the UAE's largest concession partners, active from upstream to downstream. Currently, the UAE energy sector works with US companies across 18 states and 50 facilities, from gas to chemicals to energy infrastructure and energy solutions.' 'XRG is an anchor partner in the largest LNG facility in Texas. We produce specialty chemicals across the country. And our renewable energy company, Masdar, has developed 5.5GW of operational capacity from coast-to-coast. And we are just getting started. To help harness that ambition, we opened a joint XRG/Masdar office right here in Washington DC.' He highlighted that a single new data centre can consume as much electricity as a city the size of Pittsburgh. 'Meeting this demand is not just a technical challenge - it is a once-in-a-generation investment opportunity. One that requires a system-wide shift, with energy, technology, finance and policy operating in sync,' he said. Dr. Al Jaber argued that 'in the age of hyperscalers, we must hyperscale energy,' calling for reliable baseload sources such as gas and nuclear, backed by renewables, energy storage, and emerging solutions like small modular reactors (SMRs) and fusion. He also advocated for a 'pragmatic pause' on early retirements of existing power plants while expanding nuclear capacity.
Arab News
2 days ago
- Sport
- Arab News
Al-Ain ‘honored and proud' to represent UAE at Club World Cup against Juventus, says Khalid Al-Hashemi
ABU DHABI: Al-Ain defender Khalid Al-Hashemi says it will be a privilege for the club's players to take to the field at the 2025 FIFA Club World Cup against Juventus in their opening fixture. For the latest updates, follow us @ArabNewsSport Al-Ain begin their FIFA Club World Cup campaign against the Italian giants in Washington, D.C. on Wednesday, June 18 (4 a.m. KSA on June 19) before further Group G matches vs. Manchester City and Wydad. Al-Hashemi, who starred in both legs of the 2023-24 AFC Champions League final and is a UAE national team defender, says Al-Ain are relishing the opportunity to test themselves at the highest level. 'Preparations are going well here in the US with the coach and the technical staff,' said the 28-year-old center-back, who wears No.16 for Al-Ain. 'The opportunity to play against Juve and against City in particular is a big opportunity to learn and see how our levels are now, and if we can reach their levels and compete. We will do our best in our training sessions before the games and hopefully we can get good results. 'Our hopes are really high,' Al-Hashemi added. 'We all know that we have pressure, but we want to represent Al-Ain and the UAE in the best way possible. We want to get results and show that Al-Ain are not just here (to make up the numbers) — we want to compete, we want to fight for the badge, for the flag and the country.' The club enters the new competition with significant backing from XRG, the official sponsor of Al-Ain's training kit during the FIFA Club World Cup, and through to the end of the upcoming season; as well as ADNOC, who will be the official sponsor of club's first team jerseys during local matches throughout the upcoming season. Al-Hashemi believes this backing is indicative of the support from across the UAE as Al-Ain seek to make the nation proud on the biggest global stage in club football. 'We are very privileged to have this partnership with XRG and ADNOC,' says Al-Hashemi. 'Al-Ain is honored and I think both parties are very happy with this partnership. Hopefully we represent our club, the company and our country on the biggest stage in a good way and get good results. We are very honored and very proud to be at the biggest club competition in world football.' Al-Ain secured their place at this summer's FIFA Club World Cup by winning the 2023-24 AFC Champions League, defeating Japan's Yokohama F. Marinos 6-3 over two legs in the final. Following their opening FIFA Club World Cup match against Serie A giants Juventus, Al-Ain travel to Atlanta to play eight-time Premier League winners Manchester City, before concluding their group stage fixtures against Wydad from Morocco in Washington, D.C. on June 26. Al-Hashemi, who was born in Abu Dhabi, says one of his big hopes from Al-Ain taking part in the FIFA Club World Cup is that it will inspire the next generation of Emirati footballers. The competition, the first under an expanded format, runs from June 14 to July 13 in the US, and features 32 top teams from across world football. 'I imagine that when we play in the FIFA Club World Cup, the young generation will see this and say 'one day I want to play in this competition, the biggest competition in the world',' said AI-Hashemi. 'Imagine how that will impact the young generation and give them hope and inspiration to play for a club and the national team. Hopefully, as a group and individually, we inspire the young generation to come back here to this tournament.'
