Adnoc on Monday approved Dh550 billion ($150bn) budget for the next five years as the company prepares to set up its gas subsidiary and list its shares on the Abu Dhabi Securities Exchange (ADX) next year.
The new gas processing and marketing company, Adnoc Gas, will begin operations on January 1, 2023, the company said in a statement.
“The flagship company will combine the operations, maintenance and marketing of Adnoc Gas Processing and Adnoc LNG into one consolidated entity,” it said.
“Adnoc will proceed with an initial public offering of a minority stake in the new company on the ADX in 2023, subject to applicable regulatory approvals.”
The announcement came as President Sheikh Mohamed presided over the annual meeting of the Adnoc board of directors, in his capacity as its chairman.
During the meeting, the board also directed Adnoc to pursue a “Net Zero by 2050” goal to support the UAE Net Zero by 2050 Strategic Initiative.
Sheikh Mohamed praised Adnoc's steps to further reduce its carbon footprint as it expands its operations to meet rising global energy demand.
“Adnoc is well-positioned for this new phase of accelerated growth across the energy value chain,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc managing director and group chief executive.
“Through our Net Zero by 2050 ambition, we are placing sustainability at the centre of our growth.”
The UAE is investing Dh600bn in clean and renewable energy projects over the next three decades as it aims to achieve net-zero emissions by 2050.
This month, the UAE and the US signed a strategic partnership to invest $100bn to produce 100 gigawatts of clean energy globally by 2035.
On Monday, the Adnoc board also approved the group's strategy to accelerate growth across its value chain to meet rising energy demand and support global energy security. As part of the strategy, Adnoc will set up a low carbon solutions and international growth vertical focused on new energies, gas, LNG and chemicals.
At the meeting, the board also endorsed plans to bring forward Adnoc’s 5 million barrels per day oil production capacity expansion to 2027, from the previous target of 2030, as part of the accelerated growth strategy.
Adnoc produces some of the world’s least carbon intensive oil and this new target will provide the company with greater flexibility to meet rising global energy demand, the company said.
The accelerated production capacity target is underpinned by the UAE’s robust hydrocarbon reserves, which have increased by 2 billion stock tank barrels (STB) of oil and 1 trillion standard cubic feet (TSCF) of natural gas this year.
These additional reserves increase the UAE’s reserves base to 113 billion STB of oil and 290 TSCF of natural gas, reinforcing the country’s position in global rankings as the custodian of the sixth-largest oil reserves and the seventh-largest gas reserves.
“The world needs maximum energy, minimum emissions and it needs all the energy solutions if we are to ensure global energy security. Adnoc is committed to making today’s energy cleaner while investing in the clean energies of tomorrow to strengthen our position as a reliable and responsible energy provider,” Dr Al Jaber said.
“As we deliver on these objectives, we will continue to drive greater and more sustainable value for the UAE, create opportunities for the private sector to benefit from Adnoc’s growth and enable more skilled job opportunities for UAE Nationals.”
Sheikh Mohamed emphasised on Adnoc’s role as a primary catalyst for the UAE’s growth and diversification and commended the company for maximising value for the nation and creating new economic and industrial opportunities for the private sector.
He also commended Adnoc’s efforts to drive industrial growth through its In-Country Value (ICV) programme and its support for the Make It In The Emirates initiative.
As part of its new five-year plan, Adnoc aims to add Dh175bn back into the Emirates' economy through its ICV programme. This year, the group's ICV programme has driven more than Dh35bn back into the nation’s economy and enabled 2,000 UAE nationals to be employed in Adnoc’s supply chain.
These initiatives bring the total value driven back into the economy to Dh140bn since the programme was launched in 2018, Adnoc said. In addition, a total of 5,000 UAE nationals have been employed in Adnoc’s supply chain through the programme since it was launched.
Adnoc is also supporting the Make It In The Emirates initiative and has signed agreements for local manufacturing opportunities worth more than Dh25bn with UAE and international companies this year, as it aims to locally manufacture more than 100 products in its procurement pipeline worth Dh70bn by 2030.