Adnoc’s new gas processing and marketing company, Adnoc Gas, began operations on January 1.
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 this year, the state-run energy company said in a statement on Tuesday.
A further announcement on the IPO will be made in “due course”, the company said.
“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,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc managing director and group chief executive.
“Natural gas will be a critical fuel in the energy transition and Adnoc Gas, through its world-scale operations and significant growth and expansion plans, will be well-positioned to meet both local and international gas demand.
“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.”
Adnoc Gas, which will operate eight gas processing sites and a pipeline network of more than 3,250 kilometres, is expected to unlock “significant” financial and operational opportunities, the company said.
With capacity of about 10 billion standard cubic feet of gas per day, Adnoc Gas aims to serve a wider range of domestic and international customers with an expanding portfolio of gas products.
The new company will be “more agile, better able to respond to changing market demands, and well-positioned to take advantage of strategic opportunities for future growth”, the company said.
This includes the delivery of critical capital growth projects that will increase the company’s gas processing capabilities and its intended growth in LNG, it added.
Adnoc has allocated $15 billion to invest in a range of projects by 2030, which will help it accelerate its low-carbon growth strategy.
The company will invest in clean power , carbon capture and storage, further electrification of operations, energy efficiency and new measures to build on its policy of zero routine gas flaring, the company said in a statement last week.
Last month, Adnoc said it was setting up a new low-carbon solutions and international growth vertical, which will focus on renewable energy, clean hydrogen and carbon capture and storage, as well as international expansion in gas, liquefied natural gas and chemicals.
The company, responsible for most of the UAE’s oil and gas output, has been investing heavily in the production of natural gas and hydrogen as the Arab country looks to reach net-zero emissions by 2050.
Existing joint venture partners to Adnoc LNG and Adnoc Gas Processing will continue in their partnerships with the new entity, Adnoc said on Tuesday.
“For our customers, Adnoc Gas will continue to be a reliable provider of LNG, LPG and associated products,” said Dr Al Jaber.
“This new flagship and world-scale company will strengthen our position as a responsible and sustainable energy leader in an evolving global energy landscape.”
Ahmed Alebri, former head of Adnoc Gas Processing and general manager of Adnoc Industrial Gases, has been appointed as acting chief executive of Adnoc Gas.
Peter van Driel, who previously worked with London-based energy major Shell, has been named chief financial officer. Mohamed Al Hashemi, former vice president at Adnoc Gas Processing, is the chief operating officer of the new company.
The National
