Adnoc’s growing gas ambitions have Europe at heart

Abu Dhabi National Oil Company (Adnoc) is doubling down on its gas strategy, advancing domestic plans to make the United Arab Emirates self-sufficient in gas and transform it into a net exporter by adding significant new LNG capacity. Adnoc is also moving into the Eastern Mediterranean with an investment in Israeli offshore gas producer NewMed Energy, its first foray into international upstream. Combined, the moves could make Adnoc a major gas supplier in Europe at a time when countries are looking for alternatives to Russian gas in the wake of the Ukraine war. “Adnoc wants to position itself as a gas supplier in Europe,” said an industry source. The company has been interested in East Med for some time. With BP as its partner, NewMed provides access to natural gas assets in Israel and Cyprus, and the $2 billion deal – if approved – will provide both short- and long-term opportunities to sell gas to Europe and create a regional LNG hub. It’s no coincidence that Adnoc hired Musabbeh al-Kaabi to lead its International Growth business unit. As chief executive and later chairman of Mubadala Petroleum, he knew the Eastern Mediterranean well and was instrumental in Abu Dhabi’s entry into the region, including its $934 million acquisition of the Eni-operated Eni Group in 2018. 10% stake in the giant Zohr oil field.