ADNGC to sell 4% stake in IPO

dubai – ADNOC’s gas processing unit said on Friday it plans to sell a 4 percent stake to local investors in the latest initial public offering of a state energy company in the Middle East.

The move follows a similar initial public offering by Saudi oil giant Aramco in 2019. Approximately $30 billion raisedand months before the United Arab Emirates is set to host this year’s U.N. climate talks.

The UAE, which hosts Abu Dhabi and Dubai, has chosen ADNOC CEO Sultan al-Jaber as COP28 chair, who also oversees renewable energy projects, anger climate change activists.

ADNOC owns 95% of the natural gas reserves in the UAE, the seventh largest in the world. It supplies natural gas to more than 60% of the local market and exports to more than 20 countries. The company’s net income for the first 10 months of 2022 was $4.2 billion, up from $3.6 billion for all of 2021.

It plans to list more than 3 billion shares on the Abu Dhabi Stock Exchange for purchase by local investors starting February 23.

“Gas is at the heart of the energy transition,” ADNOC Acting Group Chief Financial Officer Khaled Al Zaabi said in a release. “ADNOC Gas is well-positioned to responsibly utilize our vital natural gas resources while increasing efficiency, creating value and reliably supplying this critical fuel to meet the world’s growing energy needs.”

ADNOC Gas has a gross natural gas processing capacity of more than 10 billion standard cubic feet per day and 29 million tons of liquids per year.ADNOC announce discovery Gas production in the offshore region will reach 2 trillion standard cubic feet by February 2022.

Oil and gas have fueled the UAE’s rapid transformation into a high-tech global business hub, with futuristic cities and one of the world’s busiest airports. Analysts believe the UAE is trying to maximize profits as the world increasingly turns to renewable energy.

The UAE says it has invested more than $50 billion in renewable energy projects in 70 countries and plans to invest another $50 billion over the next decade. It’s also vowed to be carbon neutral by 2050, though it’s unclear how it will achieve that.