ADNOC weighs Canada energy push through XRG

ADNOC is exploring investment opportunities in Canada’s upstream oil and liquefied natural gas sectors through XRG, its international energy investment arm, as Abu Dhabi intensifies its search for overseas assets aligned with long-term energy security and gas demand.

Musabbeh Al Kaabi, ADNOC’s chief executive for upstream, said at the Global Energy Show in Calgary on Tuesday that the company was encouraged by Canada’s renewed emphasis on energy development, though he gave no details on the specific assets or partnerships being assessed. His remarks signalled growing Gulf interest in North American energy infrastructure at a time when Canada is seeking to widen export markets beyond the United States and position itself as a secure supplier to buyers in Europe and Asia.

The comments place Canada more clearly within the geographic scope of XRG, the international platform launched by ADNOC to pursue investments across natural gas, chemicals and lower-carbon energy. XRG has been designed as a vehicle for large-scale acquisitions and partnerships outside the UAE, with a mandate to build exposure to sectors expected to benefit from rising electricity consumption, industrial demand, artificial intelligence-linked power requirements and the continued role of gas in global energy systems.

Al Kaabi linked the opening in Canada to a broader shift in Ottawa’s approach to energy policy. Canada, the world’s fourth-largest crude producer and fifth-largest natural gas producer, has faced long-running constraints from pipeline bottlenecks, permitting delays and political divisions over new export infrastructure. The commissioning phase of new LNG export capacity on the Pacific coast has, however, strengthened industry expectations that the country can start competing more directly for seaborne gas markets.

Canada’s LNG sector has drawn attention from European buyers seeking alternatives to Russian gas and from Asian consumers looking for long-term supply from politically stable jurisdictions. German energy groups have shown interest in future offtake, while producers in western Canada are seeking routes to coastal terminals that can reduce dependence on US pipeline markets. For ADNOC, the appeal lies not only in resource ownership but also in the possibility of participating across the gas value chain, from production to liquefaction and marketing.

The UAE has been expanding its overseas energy portfolio as part of a strategy that combines hydrocarbons, petrochemicals and energy transition assets. ADNOC has pursued deals in gas, chemicals, renewables-linked fuels and infrastructure, while XRG gives Abu Dhabi a dedicated platform to move faster in international markets. The company already has exposure to Canada through Nova Chemicals, which operates in Alberta and is part of ADNOC’s wider chemicals interests.

The timing is notable because Canada is trying to market itself as a dependable supplier during a period of heightened geopolitical risk. Trade friction with Washington, energy security concerns in Europe and stronger Asian competition for gas have revived arguments in Ottawa and provincial capitals for faster approvals of energy projects. Alberta and British Columbia remain central to those ambitions, with oil sands production, Montney gas output and west coast LNG terminals forming the backbone of potential export growth.

Natural Resources Minister Tim Hodgson told the Calgary gathering that Canada wants to be seen as a source of safe and secure energy in a volatile global market. That message aligns with the pitch being made to foreign investors: the country offers large reserves, established regulation, skilled labour and political stability, but needs capital and infrastructure to unlock export potential.

For ADNOC, any move into Canadian upstream or LNG assets would fit a wider trend among national oil companies seeking international positions that complement domestic reserves. Gulf producers are no longer limiting expansion to conventional upstream stakes; they are increasingly targeting integrated gas platforms, chemicals chains and energy infrastructure that can generate stable cash flows while preserving exposure to future demand growth.

Canada’s policy environment remains a key variable. Projects still face scrutiny over emissions, Indigenous consultation, water use, land disturbance and methane controls. The federal carbon-pricing framework, provincial regulations and court challenges can affect timelines and investor confidence. Supporters of new LNG capacity argue that Canadian gas can displace higher-emission fuels abroad, while critics warn that fresh infrastructure risks locking in fossil-fuel dependence and undermining climate targets.