ADNOC Gas, a subsidiary of the Emirates National Oil Company, recently announced an ambitious $20 billion investment plan to significantly increase its natural gas processing capacity over the next four years. The company's chief financial officer, Peter van Deerle, revealed on an earnings call on August 6 that this strategic investment will support parent company ADNOC in achieving its goal of producing 5 million barrels of oil equivalent per day by 2027.

At present, ADNOC Gas has made a number of important progress. The Integrated Gas Development Expansion Phase 2 project on Das Island is nearing completion and is undergoing final commissioning work. The project will further optimize the gas processing network by transporting offshore natural gas to onshore facilities. In addition, the Company recently made a final investment decision of $5 billion in the Rich Gas Development project, which will expand treatment units at four natural gas facilities.

It is worth noting that ADNOC Gas' ongoing Meram project will maximize ethane recovery and provide feedstock support for the Borouge 4 petrochemical project at the Ruwais complex. After completion, the project will add 2.2 million tons of ethane and 1.2 million tons of natural gas liquids (NGLs) per year. The company expects the benefits of these new capacities to be reflected in the financial statements starting in 2026.

Although the global LNG market may face an oversupply situation in 2027, ADNOC Gas remains optimistic about the demand outlook. "The market is always cyclical, and we focus more on long-term trends," Van Drill said. "The company is particularly optimistic about the growing demand for clean energy in the Asian market, as well as energy demand in the UAE due to population growth, industrial expansion and data center construction.

Financial data shows that ADNOC Gas performed strongly in the second quarter, with domestic natural gas sales increasing year-on-year to 611 trillion British thermal units, driving total revenue to $5.96 billion. Among them, domestic natural gas revenue jumped sharply to $1.98 billion. The company also raised its full-year sales forecast, expecting sales in the second half of the year to be between 3.63 trillion and 3.7 trillion British thermal units.

Van der Leil specifically pointed out that there has been a new change in the liquefied petroleum gas (LPG) market, whose price has been decoupled from traditional crude oil prices. The contract price of Saudi propane reached $520 per ton in August, much higher than the price of Brent crude oil of $69.48 per barrel in the same period. He believes that this premium trend may continue for several years.

As the capacity expansion plan progresses, ADNOC Gas is gradually consolidating its position as an important global gas supplier, while also supporting the UAE's energy diversification strategy.(This article is from the official website of Jiandao www.seetao.com it must not be reprinted without permission, otherwise it will be investigated, please indicate the reprint of Jiandao.com + original link) See the Middle East column editor/Gao Xue