Today's Edition
MAYS IBRAHIM (ABU DHABI)
In response to an anticipated global increase in gas demand, ADNOC Gas is ramping up its production capabilities, aiming to boost its output from three to five million barrels of oil equivalent per day, according to ADNOC Gas Chief Financial Officer (CFO), Peter Van Driel.
During a virtual media roundtable on Monday, the CFO also noted that the UAE's economic outlook is highly favourable, with projected real GDP growth of 3.6 percent from 2024 to 2029, surpassing the global average.
Van Driel explained that this economic momentum is set to significantly boost domestic gas demand, driven by GDP and population growth and the UAE government's initiatives to attract new industries, including AI data centers.
Key Projects and Investments ADNOC Gas CFO highlighted initiatives that are key to ADNOC Gas's growth strategy, including the strategic Maximising Ethane Recovery and Monetisation (MERAM) project, set to expand its gas processing infrastructure in the UAE, extending pipelines to northern UAE regions.
Moreover, the upcoming Ruwais LNG facility will add 9.6 million tons per annum (MTPA) to ADNOC Gas's existing 6 MTPA capacity, bolstering its energy export capabilities with the support of international partners.
Commitment to Sustainability
Van Driel stressed that sustainability remains a central focus for ADNOC Gas.
The company is investing in CO2 capture and re-injection technologies, which not only reduce environmental impact but also enhance well productivity.
Future Outlook
ADNOC Gas reported a net income of $1.19 billion for Q2 2024, a 21 percent increase year-on-year.
Free cash flow reached $1 billion, indicating strong revenue generation and investment efficiency.
For the first half of 2024, revenue hit $12 billion, up from $10.6 billion in the same period last year, while EBITDA for Q2 stood at $2.1 billion, an 18 percent increase from the previous year.
Looking forward, ADNOC Gas projects a 20 percent increase in capacity and a 40% rise in EBITDA by 2028, according to Van Driel.
Shareholder Returns
ADNOC Gas is committed to delivering predictable returns to shareholders.
Van Driel explained that the company's fixed-price agreements and profit-sharing mechanisms ensure stable margins, enabling a planned annual dividend-increase of 5 percent.
