ADNOC Gas, the natural gas arm of Abu Dhabi’s national oil company, is boosting its capital expenditure and gas supply to meet growing global demand for liquefied natural gas (LNG). The company forecasts that global LNG demand will increase by 3% annually until 2040, according to a strategy update released on Monday.
The company is positioning itself to capitalize on what it describes as a “supportive market environment.” ADNOC Gas cites strong domestic demand, rapid growth in LNG consumption across Asia, and a 3% global annual increase in LNG demand. Additionally, the rise of artificial intelligence (AI) is expected to further drive LNG demand by 2030.
ADNOC Gas also anticipates a long-term LNG supply gap, which could further boost its business.
In the UAE, natural gas demand is projected to grow by 6% by 2030. In response, ADNOC Gas has raised its capital expenditure (capex) forecast to $15 billion by 2029, up from an earlier estimate of $13 billion. Peter van Driel, ADNOC Gas’s Chief Financial Officer, told Bloomberg Television that the company’s LNG business is expanding in line with rising demand, especially in Asia and the East.
Currently, ADNOC Gas’s main customers are located in the regions east of the Suez Canal.
In a significant move, ADNOC approved the final investment decision for the Ruwais LNG project in June. This project will more than double the UAE’s current LNG production capacity. It will consist of two liquefaction trains, each with a capacity of 4.8 million metric tons per annum (mmtpa), for a total capacity of 9.6 mmtpa. Once completed, the project will increase ADNOC Gas’s LNG production to around 15 mmtpa, supporting the company’s goal of expanding its international LNG portfolio.
The project will be located in Al Ruwais Industrial City in the Al Dhafra region of Abu Dhabi. ADNOC highlights that it will be the first LNG export facility in the Middle East and North Africa (MENA) region to operate on clean power, positioning it as one of the world’s lowest-carbon intensity LNG plants.
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