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UAE plans to spend $150 billion to boost global energy

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(Bloomberg)–

Most reads come from Bloomberg

The United Arab Emirates’ major energy company will boost investment to $150 billion over the next five years, speed up oil production ramp-ups and take some of its natural gas business public.

ADNOC also said it would expand its international gas, chemicals and clean energy businesses. The moves are part of a push by the company and the UAE to boost production of hydrocarbons while eliminating planet-warming emissions by 2050.

The decisions were taken on Monday at the annual board meeting chaired by UAE President Sheikh Mohamed bin Zayed. The OPEC member joins neighboring Saudi Arabia in criticizing Western governments and investors for trying to move away from fossil fuels too quickly. It pointed to this year’s price surge as a sign that too little investment has been made in oil and gas exploration in recent years.

“The world needs maximum energy, minimum emissions, and all energy solutions if we are to ensure global energy security,” Adnoc CEO Sultan al Jaber said in a statement.

natural gas listed

Adnoc will combine its LNG and gas processing divisions into a new unit. It will sell a minority stake in the business, called Adnoc Gas, through an initial public offering in Abu Dhabi in 2023.

Adnoc Gas will be one of the largest gas processing entities in the world, with a processing capacity of 10 billion cubic feet per day across eight onshore and offshore sites, Adnoc said. It will have a pipeline network of more than 3,250 kilometers (2,019 miles).

Abu Dhabi’s stock market, along with those in Dubai and Riyadh, has been a rare bright spot for IPOs this year. While volumes fell in most major markets, including Europe, Persian Gulf economies benefited from a surge in oil prices above $100 a barrel earlier this year.

Story Link: UAE plans to boost global energy with Adnoc’s $150bn spending

Adnoc is now aiming to increase crude oil production capacity to 5 million barrels per day by 2027, ahead of its previous 2030 target. The $150 billion in capital expenditures was up from the previously announced five-year spending target of $127 billion a year ago.

The company’s net-zero pledge – which applies only to emissions from Adnoc’s operations, not those from customers burning its fuel products – follows a commitment made by the UAE itself in 2021.

Adnoc also said its oil reserves rose by 2 billion barrels this year to 113 billion barrels, and its natural gas reserves stood at 290 trillion cubic feet. These “reinforce the country’s position in the global rankings as the sixth-largest custodian of oil reserves and seventh-largest natural gas reserves,” Adnoc said.

(Updated throughout.)

Most reads come from Bloomberg Businessweek

©2022 Bloomberg Intelligence

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