Adnoc Gas begins operations, stays on track for ADX listing

Abu Dhabi National Oil Company (Adnoc) has announced the formation of its new flagship company Adnoc Gas to consolidate its energy business in line with the directive of the board of directors.

The new company, which is effective from January 1, 2023, combines the operations, maintenance and marketing of the Adnoc Gas Processing and Adnoc LNG businesses into one global and market-leading consolidated business.

With the beginning of its operations, the new company remains on track for an initial public offering (IPO) to list its shares on the Abu Dhabi Securities Exchange (ADX) during the course of this year.

The new entity will be primarily focusing on world-scale gas processing, operations and marketing of its gas business and maximise value and create new opportunities for Adnoc, its partners and the UAE.

As a leading global player with capacity of 10 billion standard cubic feet of gas per day (scfd), Adnoc Gas will serve a wider range of domestic and international customers with an expanding portfolio of gas products.

Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of the Abu Dhabi National Oil Company (ADNOC), said the formation of Adnoc Gas represents another major milestone in unlocking the full value of the UAE’s vast natural gas resources.

"Natural gas will be a critical fuel in the energy transition and Adnoc Gas, through its world-scale operations and significant growth and expansion plans, will be well-positioned to meet both local and international gas demand," Al Jaber said.

In addition to enabling the growth of local industry and manufacturing, the new entity will play a critical role in delivering Adnoc’s broader LNG expansion plans, including in international markets, he said.

Last week, Adnoc announced a Dh55 billion ($15 billion) plan to incorporate low-carbon solutions, new energies and decarbonisation technologies to ensure environment-friendly activities to achieve Net Zero target by 2050.

The latest initiatives announced by the company are also in line with the UAE government's plans to invest $160 billion in clean and renewable energy sources over the next three decades.

In 2022, Adnoc’s board of directors approved a Dh550 billion ($150 billion) budget for the next five years as the company receives a go-ahead to set up its gas subsidiary and list its shares on Abu Dhabi Securities Exchange this year.

The board also endorsed plans to boost Adnoc’s production capacity to five million barrels per day by 2027 instead of the previous target of 2030.

Gas demand to rise

Natural gas is a lower-carbon fuel and will play a vital role in a responsible energy transition. Demand for natural gas is expected to increase steadily over the coming decades with global gas demand driven by industrial and manufacturing growth and the replacement of more carbon intensive fuels, such as coal, in international markets.

The UAE and Adnoc are well-placed to take advantage of this opportunity, given its significant gas reserves, a strong heritage of successfully developing gas projects and a proven track-record as a reliable energy supplier.

“For our customers, Adnoc Gas will continue to be a reliable provider of LNG, LPG and associated products. This new flagship and world-scale company will strengthen our position as a responsible and sustainable energy leader in an evolving global energy landscape,” Al Jaber said.

Alebri to lead Adnoc Gas

— muzaffarrizvi@khaleejtimes.com