A rising Gulf energy player is poised to strike a mega deal in coming weeks: On June 27, a consortium led by XRG — the new international investment arm of Abu Dhabi’s state oil firm — secured an exclusive six-week due diligence window for its $18.7 billion bid to acquire Australian energy giant Santos.

If sealed, XRG’s deal would hand Abu Dhabi National Oil Company (ADNOC) major new global operations, including significant liquified natural gas (LNG) assets. It’s also the latest sign of Gulf giants betting big on LNG as super-cooled gas becomes a critical piece of regional energy strategy. 

Just weeks earlier, Egypt reportedly signed long-term LNG import contracts with Saudi Aramco, highlighting Riyadh’s own ambitions in the sector. These developments highlight the region’s evolving role in the gas market — not just as an exporter, but also as a global LNG investor and growing consumer. This comes just ahead of a global LNG supply surge expected by 2027 that could reshape energy markets amid the transition to renewables.

Earlier this year, J.P. Morgan forecast a 54% increase in global LNG supply capacity by 2030 — largely driven by new output from North America and Qatar. As the International Energy Administration noted in June, the United States accounted for 70% of global LNG final investment decisions (FIDs) in 2022-23, but by 2024, over 75% of new LNG FIDs originated in the Middle East.