Adnoc Gas to invest $13bn in domestic and international growth

Reuters/Toru Hanai

• Revenues for 2023 of $22.7bn
• Net income of $4.7bn
• Full-year 2023 dividend of $3.25bn

Adnoc Gas plans to invest more than $13 billion in domestic and international growth opportunities over the next five years, chairman Sultan Al Jaber told the company’s annual general meeting on Monday.

Al Jaber said that the company was progressing with several “significant’ projects to accelerate its growth. Predictable margin business was expected to increase EBITDA by up to 40 percent by 2029, he said.

Adnoc Gas, a subsidiary of the state-owned Abu Dhabi National Oil Company, reported revenues of $22.7 billion and a net income of $4.7 billion in 2023, “setting the foundation for further growth in 2024 and beyond,” the company said.

---

---

Shareholders approved the board’s proposal for a full-year 2023 dividend of $3.25 billion.

Al Jaber said that the company was looking to increase its liquefied natural gas (LNG) export volumes “in a growing global market”.

Wood Mackenzie, a data and analytics business based in Edinburgh, has predicted that the Middle East will spend up to $120 billion by 2030 to boost its natural gas production.

• Adnoc Gas Q4 2023 profit rises 24%

• Adnoc’s acquisition strategy could lead to something major

• Adnoc starts work on ‘green’ LNG plant at Ruwais

Adnoc Gas awarded contracts totalling nearly $5 billion in 2023 to expand its processing capacity and increase the number of customers.

“These projects will provide additional sales volumes of up to 20 percent,” Al Jaber said.

“Our international sales momentum grew in 2023 with the signing of LNG export agreements worth up to $12 billion, securing our returns in the coming years and capitalising on the increasing global demand for LNG as a transition fuel,” he said.

Shell said in February that it expected global LNG demand to reach 625 to 685 million tons a year in 2040.

Adnoc announced last month that early engineering, procurement and construction work had started on its low-carbon LNG project in Al Ruwais City in Abu Dhabi, which Adnoc Gas plans to acquire.

The final investment decision is expected to be issued this year.

Ruwais LNG will increase the emirate’s capacity from 5.7 million tonnes per year to 15 million.

Adnoc Gas will continue expanding its natural gas pipeline network and developing infrastructure to boost gas supply for its petrochemicals growth in Ruwais.

Ahmed Alebri, the chief executive of Adnoc Gas, said that the company aims to expand internationally by acquiring new positions in the gas value chain, targeting opportunities in Europe, India, China and Southeast Asia “if they add value to our business”.

Adnoc is in talks with the LNG exporter NextDecade, which has its headquarters in Texas, over a potential offtake from a proposed fourth processing unit at the $18 billion Rio Grande LNG export facility.

Adnoc Gas’s share price rose 30 percent from its listing date in March 2023 to the end of last year, lifting its market capitalisation to $65 billion, and making it one of the top 20 oil and gas companies worldwide.