- ADNOC is set to boost investment to $150 billion over the next five years, speed up an increase in oil-production capacity and list some of its natural gas businesses.
- ADNOC will combine its liquefied natural gas and gas-processing arms in a new unit.
The United Arab Emirates’ main energy company, The Abu Dhabi National Oil Co (ADNOC), has said it would expand its international gas, chemicals and clean-energy operations. It is set to boost investment to $150 billion over the next five years, speed up an increase in oil-production capacity and list some of its natural gas business. The moves are part of a push by the company and the UAE to raise the output of hydrocarbons while at the same time neutralizing planet-warming emissions by 2050.
This decision was made at an annual board meeting on Monday led by the UAE President Sheikh Mohammed bin Zayed A Nahyan. The Western governments and investors have been criticised by the OPEC member and its neighbouring Saudi Arabia for trying to transition away from fossil fuels too quickly. In addition, the price surge this year is evidence of too little investment in oil and gas exploration in recent years.
Sultan al-Jaber, ADNOC’s chief executive, said, “The world needs maximum energy, minimum emissions and all the energy solutions if we are to ensure global energy security”. ADNOC will combine its liquefied natural gas and gas-processing arms in a new unit. It will sell a minority share of the ADNOC Gas business through an initial public offering in Abu Dhabi in 2023. ADNOC owns 70 per cent of its LNG arm, with the rest held by Japan’s Mitsui & Co., BP Plc and TotalEnergies SE. ADNOC will build a new LNG production plant at the port city of Fujairah as it looks to almost triple its capacity to around 15 million tons a year. It’s also growing its LNG trading division.