Abu Dhabi National Oil Company’s (ADNOC) board of directors has approved a $150 billion (Dh550 billion) budget for the next five years as the company prepares to set up its new gas processing and marketing company, ADNOC Gas.
The flagship company will combine the operations, maintenance, and marketing of ADNOC Gas Processing and ADNOC LNG into one consolidated entity. Further, the new subsidiary will begin operations on January 1, 2023.
ADNOC said in a statement that it plans to float a minority stake in the new company on the Abu Dhabi Securities Exchange (ADX) in 2023.
The announcement was made during the annual meeting of ADNOC’s board of directors, which was chaired by the UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan.
During the meeting, which was held at ADNOC headquarters, the board directed ADNOC to pursue a Net Zero by 2050 ambition to support the UAE Net Zero by 2050 Strategic Initiative. The board also approved ADNOC’s strategy to accelerate growth across its value chain to responsibly meet rising energy demand and support global energy security.
As part of the strategy, ADNOC will establish a new Low Carbon Solutions & International Growth vertical focused on new energies, gas, liquefied natural gas (LNG), and chemicals.
Sheikh Mohamed praised ADNOC’s steps to further reduce its carbon footprint as it expands its operations to meet rising global energy demand.
ADNOC’s board also endorsed plans to bring forward the company’s 5 million barrels per day oil production capacity expansion to 2027, from the previous target of 2030, as part of the accelerated growth strategy.
The accelerated production capacity target is underpinned by the UAE’s robust hydrocarbon reserves, which have increased by 2 billion stock tank barrels (STB) of oil and 1 trillion standard cubic feet (TSCF) of natural gas this year, as per the statement.
These additional reserves increase the UAE’s reserves base to 113 billion STB of oil and 290 TSCF of natural gas, reinforcing the country’s position in global rankings as the custodian of the sixth-largest oil reserves and the seventh-largest gas reserves.
“ADNOC is committed to making today’s energy cleaner while investing in the clean energies of tomorrow to strengthen our position as a reliable and responsible energy provider. As we deliver on these objectives, we will continue to drive greater and more sustainable value for the UAE, create opportunities for the private sector to benefit from ADNOC’s growth, and enable more skilled job opportunities for UAE Nationals,” noted HE Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC.
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