What connects the watermelon to natural gas?
Fatema Al Nuaimi, the chief executive of Adnoc Gas, recalled in an interview with me last week that when she tries to explain the interconnectedness of gas in our daily life, she often uses this example.
“Even the watermelon that we plant has traces of Adnoc Gas.” She is not wrong. For a watermelon to grow in the UAE, it requires irrigation water, pumped using electricity - which in the Emirates is largely sourced from gas. It is then picked and kept in cold storage, which is again gas-powered. For the watermelon - a necessity in UAE summers - to arrive at our tables without needing hydrocarbons, is an impossibility.
The gas that makes watermelons grow also keeps lights on, cars running, when used in the compressed natural gas form, and also finds its way into plastics that are indispensable to modern life.
However, much like its cousin oil, gas is also incredibly politicised. We saw that after Russia’s invasion of Ukraine, when Europe’s dependence on the former’s gas made it easy for Moscow to wield its supply of the fuel to its political advantage.
We also see it in the region. In today’s newsletter, we take a look at Adnoc’s plans for gas, Iraqi Kurdistan’s safety issues surrounding gas production and what Opec plans to do next year.
To watch this week
Adnoc Gas’s chief executive doesn’t think so. In a wide-ranging interview, Ms Al Nuaimi, who previously headed Adnoc LNG, countered industry opinion of an impending glut in the LNG markets. Adnoc is building a 9.6 million tonne per annum capacity liquefied natural gas plant at Ruwais. Over 80 per cent of planned output has already been allocated via long-term deals including with Shell and Indian Oil. The remainder, she said, would be set aside to meet spot demand, coming mostly from Asia.
Industry projections: The International Energy Agency says 300 billion cubic metres of new LNG export capacity will be added annually by 2030 as projects in the US and Qatar start up. In 2026, LNG supplies are set to rise by 7 per cent to 40bcm, which is the largest increase since 2019. Demand is also keeping up with supply and is forecast to rise 2 per cent in 2026.
Adnoc Gas’s take: Ms Al Nuaimi differentiates between project announcements and implementation. “Supply usually comes in a step change," she said. She expects prices to go into a “reasonable lower range” in 2026, prompting more people in Asia to switch from polluting coal to gas.
Abu Dhabi may have gas so plentiful it can grow watermelons in the desert. However, in Iraqi Kurdistan, which has 3 per cent of the world's gas reserves, power shortages are a daily reality.
The government in the Kurdistan Region of Iraq has struggled to keep the lights on for its 6.5 million people. The KRG even launched a project called Runaki last year to upgrade the region’s electric grid and provide uninterrupted power by the end of 2026.
In parts of the region, power had grown reliable enough that households began cancelling their private generator contracts. However, a drone strike on the Khor Mor gas field operated by Dana Gas halted supplies to power stations and caused blackouts. By Sunday, production had restarted and power had been restored.
The strikes on Khor Mor come a year after the last deadly attack on the site, which left four people dead. The attacks happened just as the KRG was helping connect its people to an uninterrupted grid. As Amena Bakr writes for us, politicising the power sector helps no one.
Bottom line: Iraq’s Kurdistan region had been on a mission to provide 24/7 electricity for its people. Despite having abundant gas, its fractious relations with the Iraqi federal government have been a detriment to enabling energy access for all.
What does Opec+ hope to accomplish? The group of 22 countries, led by Saudi Arabia and Russia, has paused production increases for the first quarter of 2026.
Since October, the group has been unwinding 1.65 million bpd of voluntary cuts first implemented in April 2023. Opec+ approved adding about 137,000 bpd for each of October, November and December.
Fearing a possible glut should Russia/Ukraine peace talks materialise, Opec+ has instead chosen to hold fire over bringing more supply into the markets. The group also approved a mechanism to assess production capacities, which will then enable them to determine output quotas in the new year.
Producers such as the UAE, which is very close to its targeted 5 million bpd of capacity, want to produce more, while many African producers have struggled to bring on more output.
What to expect: Opec's pause comes as market analysts worry about a staggering glut. Rystad Energy forecasts an oversupply of 3.75 million bpd of liquids in 2026 - one of the largest projected gluts in recent years.
Jargon buster
Spot demand: I talk about spot demand in my interview with the Adnoc Gas chief executive. Simply put, it means the immediate demand for a commodity. Spot demand results in spot delivery prices, which determine immediate sale of a commodity, such as oil or LNG. This is in contrast to long-term contracts, which are pre-agreed and enforced despite changes in current market price for a commodity.
Happening this week
- Syria's International Expo for Oil, Gas & Energy in Damascus (December 3-6)
- Libya International Gas Forum in Tripoli (December 6-7)
- Middle East Gas Conference in Dubai (December 10)
Our top energy reads
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Tips from the expert
Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.
- Sellers should focus on providing high-quality used goods at attractive prices to buyers.
- It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
- Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
- Be creative and look around your home for valuable items that you no longer need but might be useful to others.
UAE currency: the story behind the money in your pockets
Who is Mohammed Al Halbousi?
The new speaker of Iraq’s parliament Mohammed Al Halbousi is the youngest person ever to serve in the role.
The 37-year-old was born in Al Garmah in Anbar and studied civil engineering in Baghdad before going into business. His development company Al Hadeed undertook reconstruction contracts rebuilding parts of Fallujah’s infrastructure.
He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.
He is a member of the Al Hal Sunni-based political party and the Sunni-led Coalition of Iraqi Forces, which is Iraq’s largest Sunni alliance with 37 seats from the May 12 election.
He maintains good relations with former Prime Minister Nouri Al Maliki’s State of Law Coaliton, Hadi Al Amiri’s Badr Organisation and Iranian officials.
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
88 Video's most popular rentals
Avengers 3: Infinity War: an American superhero film released in 2018 and based on the Marvel Comics story.
Sholay: a 1975 Indian action-adventure film. It follows the adventures of two criminals hired by police to catch a vagabond. The film was panned on release but is now considered a classic.
Lucifer: is a 2019 Malayalam-language action film. It dives into the gritty world of Kerala’s politics and has become one of the highest-grossing Malayalam films of all time.
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
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RESULTS
5pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (Dirt) 1,400m
Winner: Yas Xmnsor, Sean Kirrane (jockey), Khalifa Al Neyadi (trainer)
5.30pm: Falaj Hazza – Handicap (PA) Dh70,000 (D) 1,600m
Winner: Arim W’Rsan, Dane O’Neill, Jaci Wickham
6pm: Al Basrah – Maiden (PA) Dh70,000 (D) 1,800m
Winner: Kalifano De Ghazal, Abdul Aziz Al Balushi, Helal Al Alawi
6.30pm: Oud Al Touba – Handicap (PA) Dh70,000 (D) 1,800m
Winner: Pharitz Oubai, Sean Kirrane, Ibrahim Al Hadhrami
7pm: Sieh bin Amaar – Conditions (PA) Dh80,000 (D) 1,800m
Winner: Oxord, Richard Mullen, Abdalla Al Hammadi
7.30pm: Jebel Hafeet – Conditions (PA) Dh85,000 (D) 2,000m
Winner: AF Ramz, Sean Kirrane, Khalifa Al Neyadi
8pm: Al Saad – Handicap (TB) Dh70,000 (D) 2,000m
Winner: Sea Skimmer, Gabriele Malune, Kareem Ramadan
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
COMPANY%20PROFILE
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T20 World Cup Qualifier, Muscat
UAE FIXTURES
Friday February 18: v Ireland
Saturday February 19: v Germany
Monday February 21: v Philippines
Tuesday February 22: semi-finals
Thursday February 24: final
