Adnoc Gas, the integrated gas processing unit of Adnoc, has awarded $1.34 billion in contracts to expand its pipeline network.
Agreements have been signed with Petrofac Emirates and a consortium made up of the National Petroleum Construction Company and CAT International, Adnoc Gas said in a statement on Monday to the Abu Dhabi Securities Exchange, where its shares are traded.
The deal includes the construction of a gas compression plant in Habshan, as well as new pipelines that would extend the company’s existing network to about 3,500 kilometres from its current 3,200 kilometres.
The pipeline expansion, which is expected to allow the movement of higher volumes of gas to customers in the Northern Emirates, will drive “further growth” for Adnoc Gas and support the company’s strategy to boost its market share, the company said.
“Our strategic network expansion will bring the advantages of lower-cost, sustainable and cleaner gas to more locations across the UAE by enhancing industrial access to natural gas, a cost-competitive and less carbon-intensive fuel,” said Ahmed Alebri, chief executive of Adnoc Gas.
“The expanded pipeline will drive further growth for Adnoc Gas and our shareholders as we deliver on our mandate to achieve gas self-sufficiency for the UAE.”
More than 70 per cent of the total contract value for the pipeline is expected to flow back into the economy, Adnoc Gas said.
The company has access to 95 per cent of the UAE's natural gas reserves, estimated to be the seventh largest globally. It also supplies more than 60 per cent of the country's gas needs.
In March, Adnoc raised about Dh9.1 billion ($2.5 billion) from the sale of a 5 per cent stake in its gas business, making it the largest listing on the ADX and 2023's biggest initial public offering globally at the time.
The company sold more than 3.8 billion shares, with the IPO drawing strong demand from institutional and retail investors, and generating more than $124 billion in orders.
The listing surpassed that of Borouge, which went public in June 2022 and raised $2 billion.
Adnoc Gas reported a 9 per cent increase in its first-quarter net profit as it optimised costs and maintained robust margins despite a sharp slide in oil and gas prices.
Net income for the three months to the end of March rose to $1.3 billion, compared with a pro forma adjusted net profit of $1.2 billion recorded during the same period last year.
In May, Adnoc Gas signed a three-year supply agreement with TotalEnergies Gas and Power, a subsidiary of France’s TotalEnergies, for the export of liquefied natural gas (LNG) as demand for the fuel picks up amid a global energy crisis.
Global LNG trade reached a high of $450 billion in 2022 amid a surge in European demand as the region reduced its reliance on Russian gas imports, the International Energy Agency said in a February report.
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Abu Dhabi National Oil Company's headquarters in Abu Dhabi. Adnoc Gas will be valued at up to Dh186.5 billion ($50.8 billion) when it lists about 4 per cent of its shares. Reuters -
The four previous Adnoc IPOs have covered fuel retail (Adnoc Distribution), drilling, petrochemicals (Borouge) and fertilisers (Fertiglobe). Reuters -
Adnoc Gas's IPO will be comparable in value to large international companies such as Occidental, Eni and Woodside. Photo: Adnoc -
Sultan Al Jaber, Minister of Industry and Advanced Technology and Adnoc's group chief executive, speaking at the World Future Energy Summit in Abu Dhabi. Wam -
Trainees work on the gas dehydration unit during the opening of Adnoc's Technical Academy in Abu Dhabi. Pawan Singh / The National
