Carbon News | Average profit decline of listed central SOEs’ new energy businesses reaches 40% in 2025

Miguel Fonseca, CEO of EDP Renewables Asia Pacific, stated in an interview that approximately half of the funding will be allocated to developing solar and energy storage projects in Australia, aiming to capitalize on the country’s already high demand for energy storage. Fonseca added that the company will also advance similar projects across other parts of Asia and plans to deploy a total of USD 2 billion in the region by 2030. After exiting several Asian markets—including South Korea, Indonesia, and Thailand—the company will now focus on Australia and other countries deemed high-growth markets. (Source: BloombergNEF) 07 UAE Withdraws from OPEC Effective May 1 On April 28, the United Arab Emirates (UAE) announced its formal withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and the "OPEC+" framework, effective May 1. This decision was not sudden but rather the culmination of long-simmering, deep-rooted tensions. According to the UAE’s official statement, the withdrawal reflects a proactive choice aligned with its national long-term strategy and economic vision. The UAE has long expressed dissatisfaction with the production quotas assigned under the OPEC+ framework. It has invested heavily to raise its oil production capacity to approximately 3.4 million barrels per day (bpd), with plans to reach 5 million bpd by 2027. Remaining within OPEC would constrain this expansion, whereas withdrawal allows the UAE to gradually increase output and independently determine its production pace. This decision stems from a forward-looking assessment: global energy demand is expected to continue growing. Leaving the organization grants greater flexibility to respond swiftly to market shifts and meet global demand. (Source: China Development Network) 08 ADNOC Plans Multi-Billion-Dollar Investment in U.S. Natural Gas Business Amid ongoing instability in Iran disrupting global energy markets, Abu Dhabi National Oil Company (ADNOC) is planning large-scale investments in the U.S. natural gas sector through its international investment arm, XRG, to diversify its portfolio. Nameer Siddiqui, XRG’s newly appointed Chief Investment Officer, stated that the company is evaluating 29 potential transactions to build a vertically integrated global natural gas business—gaining control across all segments of the supply chain. He added that this initiative involves investments totaling several billion dollars. As part of efforts to meet surging global liquefied natural gas (LNG) demand—and to supply natural gas to U.S. data centers—XRG is assessing various investment structures, including controlling stakes, joint ventures, and minority equity investments. (Source: Caixin Global) 09 Amazon Continues Expanding Clean Power Procurement in Australia In April, Amazon signed nine power purchase agreements (PPAs) covering solar, wind, and battery storage projects, cementing its position as one of Australia’s largest corporate buyers of clean electricity. Earlier, in June 2025, the company announced a plan to invest USD 14 billion by 2029 to expand its data center infrastructure and AI capabilities in Australia. These projects—located across New South Wales and Victoria—will add 430 megawatts (MW) of renewable generation capacity and 236 MW of energy storage capacity to Amazon’s existing contracted clean power portfolio of 494 MW.

Natural Gas: A New Hotspot in Middle Eastern Energy Development

However, to achieve their full production targets, core Middle Eastern members of OPEC+ must carefully navigate an oversupplied market and await the peak of non-OPEC+ supply. With slowing investment in non-OPEC+ countries, Middle Eastern nations have accelerated incremental supply—leveraging seasonal demand gaps and low inventory levels. Petroleum product exports rose from roughly 5.7 million barrels per day (bpd) in Q1 2019 to 7.2 million bpd in Q1 2025, now accounting for over one-quarter of global petroleum product trade. Dual pressures from international market prices and demand may prompt OPEC+ to adjust production capacity sooner than anticipated. Ongoing crude oil expansion projects in UAE, Saudi Arabia, Iraq, and Kuwait focus on maintaining and further boosting production capacity. For Saudi Arabia and the UAE, offshore developments at high-yield fields—including Upper Zakum, Lower Zakum, Berri, Marjan, and Zuluf—are critical to achieving their respective targets of 12 million bpd and 5 million bpd. Further expansions at Upper Zakum, Safaniya, and Manifa could further lift output, as both countries seek to offset declining onshore field production—which currently accounts for more than half of their total output. Addressing operational challenges such as rising water cut and water management is becoming increasingly vital—especially at mature onshore fields like Ghawar and ADNOC’s Bab, Bu Hasa, and Asab. For Iraq and Kuwait, continued investment to expand capacity at currently producing fields remains essential to meeting their respective targets of 6 million bpd and 4 million bpd. In Iraq’s case, infrastructure—including export terminals, pipelines, refineries, and water injection systems—is equally crucial. (II) International Expansion Given that OPEC+’s ongoing production cuts restrict Middle Eastern NOCs’ ability to fully leverage domestic production potential, these companies have strategically pivoted toward aggressive international expansion to sustain growth—evolving into leading global oil companies through ambitious worldwide strategies. Abu Dhabi National Oil Company (ADNOC) launched XRG, an USD 8-billion investment vehicle, reflecting this trend. Its goal is to maintain global leadership in chemicals, integrated gas, and low-carbon energy, with major investments underway in Azerbaijan, Mozambique, Turkmenistan, and the United States. Saudi Aramco is leveraging its stake in MidOcean Energy to expand its LNG holdings in Peru, positioning itself as a global LNG giant with interests in both the U.S. and Australia. QatarEnergy is pursuing high-potential exploration blocks in Namibia, Brazil, and Suriname to diversify its resource base. Collectively, these initiatives underscore their ambitions for energy security, portfolio diversification, and global leadership in low-carbon energy. Across the Middle East, investment trends point toward a shift toward natural gas and offshore development. Moreover, as most countries approach their established production targets, greenfield construction will soon peak—giving way to maintenance and brownfield projects to sustain investment. Between 2020 and 2035, over USD 400 billion in investments are slated for the region—approximately one-third earmarked for offshore project development, and a similar share allocated to LNG and natural gas projects.

Abu Dhabi’s XRG Is Said to Eye Stake in Shell-Backed LNG Canada

Sep 22, 2026

Abu Dhabi’s XRG is exploring an acquisition of a stake in the Shell-led LNG Canada project to expand its natural gas portfolio amid regional supply disruptions. While discussions with partners like PetroChina are underway, no deal has been finalized.

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