ADNOC Gas is to invest $13 billion in domestic and international opportunities in the next five years and aims to more than double its liquefied natural gas (LNG) production capacity by 2028.
The $65 billion top 20 oil and gas company included the commitments in its 2023 results, in which it recorded a net income of $4.7 billion.
Dr. Sultan Ahmed Al Jaber, Chairman of ADNOC Gas – the integrated gas processing unit of ADNOC – said the investment will increases its EBITDA by up to 40% by 2029.
He said last year it made substantial investments, awarding contracts worth $4.9 billion to expand its processing capacity, which will provide additional sales volumes of up to 20%.
“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.
“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.”
ADNOC has announced its intention to take a final investment decision (FID) on the Ruwais LNG project in 2024.
Dr. Ahmed Alebri, CEO of ADNOC Gas, said its strong financial performance underpins its confidence to expand its global footprint and explore new revenue streams. “We aim to expand internationally by acquiring new positions in the gas value chain, targeting opportunities in Europe, India, China and South-East Asia if they add value to our business,” he said.
ADNOC Gas is well-positioned to benefit from ADNOC’s planned expansion of oil production capacity to five million barrels per day (bpd) by 2027.
The company will continue to expand its natural gas pipeline network and develop infrastructure to boost gas supply for its petrochemicals growth in Ruwais.
ADNOC Gas aims to enhance operational efficiency through decarbonisation, digital transformation, and artificial intelligence (AI)-led technology innovation, which is expected to yield savings of up to $400 million annually.
Last September, it completed a ‘proof of concept’ pilot using advanced robotics for continuous monitoring and inspection of large facilities, resulting in improvements to equipment availability and employee safety.
ADNOC targets 10 Mtpa carbon capture
ADNOC is targeting 10 Mtpa carbon capture by 2030. Outlining its Net Zero strategic plans, currently it has around 4 million tonnes of carbon dioxide (CO2) captured by year in operation or under development at its Habshan gas processing plant and Hail and Ghasha ‘megaprojects’.
It claims it is is a ‘pioneer’ in CCS technology, having opened what it describes as the world’s first commercial-scale operation, Al Reyadah, for capturing steel emissions in 2016. A corporate video said it is targeting 800,000 tonnes of captured CO2 annually and 25% reduction in carbon emissions.
The 43 km export pipeline, at 230 bar, will be among the highest-pressure CO2 transfers globally, with gas transferred to Bab and Rumaitha, before it gets injected into ADNOC’s onshore wells. Plans are also afoot to integrate with its hydrogen business.
ADNOC is investing in technology with scale up potential, including a pilot to turn CO2 into rock; the world’s first sequestered CO2 injection well in a carbonate saline aquifer; and modular carbon capture technology deployed at Fertiglobe.
It has also entered a partnership with Oxygen to develop the first large scale Direct Air Capture (DAC) project.
ADNOC recently signed a 15-year Heads of Agreement liquefied natural gas (LNG) agreement with SEFE Marketing & Trading Singapore Pte, a subsidiary of Germany’s SEFE Securing Energy for Europe, for the delivery of 1 million Mtpa of LNG.
The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project. It is the second long-term LNG supply agreement from the Ruwais LNG project, following the 15-year agreement with China’s ENN Natural Gas signed in December 2023. Deliveries are expected to start in 2028, upon the start of commercial operations.
