Adnoc Gas to spend over $13 billion on growth opportunities by 2029

Adnoc’s gas and LNG unit, Adnoc Gas, plans to plans to invest over $13 billion in domestic and international growth opportunities over the next five years.

UAE’s Adnoc Gas said on Monday it has held its first annual general meeting (AGM) since its initial public offering in March 2023.

During the meeting, led by chairman Ahmed Al Jaber, the company’s shareholders approved the board of directors’ proposal to distribute a full-year 2023 dividend of $3.25 billion.

He said that the company saw its share price surge 30 percent from March 2023 to year-end, driving its market capitalization to $65 billion and ranking Adnoc Gas among the top 20 oil and gas companies worldwide.

In 2023, Adnoc Gas awarded contracts worth $4.9 billion to expand its processing capacity and reach more customers, and these projects will provide additional sales volumes of up to 20 percent.

Boosting LNG volumes

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

“Between 2024 and 2029, we plan to invest over $13 billion in domestic and international growth opportunities, with our predictable margin business expected to increase our Ebitda by up to 40 percent by 2029,” he said.

“In addition, we are looking to increase our LNG export volumes in a growing global market. Our aim is to acquire the new Ruwais LNG plant and more than double our LNG production capacity by 2028,” Al Jaber said.

Adnoc recently signed a heads of agreement with a unit of German gas importer Securing Energy for Europe (SEFE) to supply the latter with LNG from its planned LNG terminal in Al Ruwais.

Prior to that, the company signed its first LNG supply deal for this terminal with China’s ENN.

Adnoc plans to take a final investment decision on the 9.6 mtpa plant this year.

Adnoc already owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.

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