ADNOC Gas, the natural gas unit of Abu Dhabi’s national oil company, is raising its capital expenditure and gas supply, expecting global LNG demand to continue growing by 3% every year by 2040, ADNOC Gas said in a strategy update on Monday.
ADNOC Gas says it is positioned to capture a “highly supportive market backdrop” with robust local gas demand, exponential demand growth in Asia, 3% global annual LNG demand growth, and the AI boom driving additional global LNG demand by 2030.
The company also sees an LNG supply gap over the long term.
The United Arab Emirates (UAE) is expected to see its natural gas demand rise by 6% by 2030, according to ADNOC Gas.
The company now has a capital expenditure (capex) plan of $15 billion by 2029, up from $13 billion previously expected.
“Our LNG business is growing on the back of demand that we see,” ADNOC Gas’s chief financial officer Peter van Driel told Bloomberg Television in an interview on Monday.
Increased supply is set to reflect growing demand “in particular into the east and Asia,” van Driel added.
Currently, the majority of ADNOC Gas’s customers are located East of Suez.
In June, ADNOC took the final investment decision to move forward with the Ruwais LNG project, which will more than double the existing LNG production capacity in the United Arab Emirates.
The project will consist of two 4.8 million metric tons per annum (mmtpa) LNG liquefaction trains with a total capacity of 9.6 mmtpa. This would more than double ADNOC’s existing UAE LNG production capacity to around 15 mmtpa, as the company builds its international LNG portfolio.
The project, located in Al Ruwais Industrial City in the Al Dhafra region of Abu Dhabi, will be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, making it one of the world’s lowest-carbon intensity LNG plants, ADNOC says.
By Charles Kennedy for Oilprice.com