ADNOC Aims To Grow Energy Market Share In Europe
By Cyril Widdershoven – Apr 21, 2023, 10:31 AM CDT
ADNOC has taken a strategic stake in Israeli offshore gas producer NewMed Energy, which will expand its foothold in the East Med region.
ADNOC aims to meet growing international demand for LNG by becoming a net-exporter of gas.
Last week, Abu Dhabi engaged in talks with Germany about increasing investments in green hydrogen
ADNOC, the national oil company of Abu Dhabi, is expanding its natural gas production capacity and increasing investments to target Europe’s gas markets. As one of the Middle East’s largest energy producers, ADNOC aims to meet the growing international demand for LNG by becoming a net-exporter of gas.
The company is constructing additional LNG capacity and expanding its international natural gas production footprint in other regions, including the East Med region. ADNOC has taken a strategic stake in Israeli offshore gas producer NewMed Energy, which will epand its foothold in the East Med region and increase its links with European markets. ADNOC’s CEO, Sultan Al Jabr, aims to become a major supplier to Europe, and the appointment of Mussabbeh Al Kaabi, former CEO of Mubadala Petroleum, to head ADNOC’s international growth unit is fundamental to achieving this goal. Al Kaabi was responsible for ADNOC’s 2018 acquisition of a 10% stake in Egypt’s giant offshore gas field Zohr, operated by Italian major ENI.
ADNOC has more than just LNG on its agenda. Last week, Abu Dhabi engaged in talks with Germany about increasing investments in green hydrogen. The UAE and Germany explored investments in sustainable industrial development, decarbonization, and green hydrogen during the Hannover Messe. ADNOC has set its sights on Germany and Northwest Europe for its green hydrogen and green ammonia targets. Fertiglobe, ADNOC’s joint venture with Egyptian-Dutch chemical company OCI, is working on various initiatives to provide both to the Port of Rotteram and other strategic locations. At the Hannover Messe, Omar Al Suwaidi, UAE’s undersecretary of the Ministry of Industry and Advance Technology, announced that both countries will be collaborating on the development, production, and supply of green hydrogen for industry. ADNOC has already supplied its first LNG to Germany’s RWE in February, and plans to supply low-carbon ammonia to Germany by the end of 2022.
To bolster the global expansion of ADNOC’s core offerings, its subsidiary ADNOC Logistics & Services announced the deployment of five brand-new Very Large Gas Carriers (VLGCs), built at the Jiangnan Shipyard in Shanghai, China. These vessels will be owned and operated by ADNOC L&S’s joint venture with Wanhua Chemical Group, AW Shipping, and will primarily transport LPG, further enhancing ADNOC’s ability to meet the growing worldwide demand for gas. To comply with future emission regulations, the new VLGCs – Al Ain, Al Salam, Baynounah, Rabdan, and Zakher – will be equipped withdual-fuel engines that run on LPG. ADNOC L&S’s fleet already consists of over 800 owned, operated, and chartered vessels. The Chinese shipyard is also constructing LNG carriers for ADNOC L&S, which are slated for delivery in 2025 and 2026.
