Energy Giants Bet Big on Floating LNG and VLCCs Amid Global Fragmentation
Global energy and maritime markets are experiencing significant developments that reveal a strategic reality of geopolitical fragmentation and chokepoint insecurity. ADNOC's investment arm, XRG, is considering acquiring up to 50% of Energos Infrastructure, a floating-LNG company valued at around $3 billion.
Energos operates 13 floating LNG assets in various countries, including Brazil, Egypt, Indonesia, Mexico, and the Netherlands. The potential acquisition would give XRG exposure to floating LNG import capacity, shipping, and long-term infrastructure contracts.
The deal is part of a larger trend where energy companies are investing heavily in floating infrastructure due to its flexibility and speed in responding to supply disruptions. This trend is driven by the need for secure and stable energy supplies, particularly after recent global events such as the Russian invasion of Ukraine and security concerns around Hormuz and the Red Sea.
Meanwhile, shipowners have ordered more Very Large Crude Carriers (VLCCs) in 2026 than in any comparable period over the last 25 years. This surge in orders is estimated to be worth more than $20 billion, with some data providers suggesting that up to 217 VLCCs could be ordered this year.
The shipping market's rationale for this surge is based on persistent oil demand and geopolitical dislocation, which has driven buyers to look further afield for crude supplies. The global oil market's main clients, Asian refiners, now desperately need optional access to crude from various regions, increasing ton-mile demand without necessarily requiring explosive oil-demand growth.
The ADNOC/XRG interest fits into a larger pattern of the company expanding its position in the Rio Grande LNG development in Texas and entering Argentina's emerging LNG chain through upstream interests in Vaca Muerta. XRG aims to build a global gas and LNG portfolio with capacity of approximately 25 million tons per year by 2035.