UAE’s energy giant Adnoc has launched a new gas and LNG unit, Adnoc Gas, as it looks to further expand its international presence.
Adnoc Gas, formed on January 1, combines the operations, maintenance, and marketing of the Adnoc Gas Processing and Adnoc LNG businesses into one “global and market-leading consolidated business”, the firm said in a statement.
As Adnoc grows its gas production and processing capacity, the combined scale and capabilities of the new unit would maximize value and create new opportunities for Adnoc, its partners and the UAE, it said.
“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,” Adnoc said.
Adnoc Gas will operate eight processing sites both onshore and offshore with a pipeline network of over 3,250km.
Existing Joint Venture (JV) partners to ADNOC LNG (Mitsui & Co, bp and TotalEnergies) and ADNOC Gas Processing (Shell, TotalEnergies and PTTEP) will continue in their respective JV partnerships with ADNOC Gas.
The formation of Adnoc Gas represents “another major milestone” in unlocking the full value of the UAE’s vast natural gas resources and builds on Adnoc’s more than 40 years’ experience as a “leading” gas producer, Ahmed Al Jaber, UAE minister of industry and Adnoc CEO, said in the statement.
“In addition to enabling the growth of local industry and manufacturing, ADNOC Gas will play a critical role in delivering Adnoc’s broader LNG expansion plans, including in international markets, he said.
Leadership and IPO
Ahmed Mohamed Alebri has been appointed as chief executive officer (acting) of Adnoc Gas, Peter van Driel as chief financial officer, and Mohamed Al Hashemi as chief operating officer.
Alebri previously served as CEO of Adnoc Gas Processing and general manager of Adnoc Industrial Gases.
As per the new CFO, he is a 28-year veteran of Shell, where he served in various key roles in accounting, investor relations, M&A and finance while Al Hashemi is the former SVP of production planning and transmission at Adnoc Gas Processing.
As announced in November 2022, Adnoc intends to proceed with an initial public offering (IPO) of a minority stake in Adnoc Gas on the Abu Dhabi Securities Exchange (ADX) during the course of 2023, subject to applicable regulatory approvals.
The company said it would make further announcement in relation to the intended IPO in “due course”.
Adnoc’s LNG business
Adnoc owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.
Besides this terminal, Adnoc is also working on the second LNG export plant in Fujairah.
According to Adnoc, the Fujairah LNG terminal would have two 4.8 mtpa LNG trains, boosting the company’s LNG production capacity by 9.6 Mtpa, as it looks to respond to the growing global demand for natural gas.
Besides this, Adnoc is working to renew its fleet of LNG carriers and has already ordered six new vessels at China’s Jiangnan Shipyard.