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Growing Global Demand: Adnoc Gas projects a rise in global liquefied natural gas (LNG) demand as new countries begin importing the resource for the first time.
Expansion Plans: The company’s parent, Abu Dhabi National Oil Co., is constructing a new plant in Ruwais, set to more than double the UAE’s LNG export capacity by 2028. Oman and Qatar are also boosting their LNG production capabilities.
Optimistic Outlook: Adnoc Gas forecasts a 14% increase in global gas demand over the next decade, surpassing other predictions, and reports a 21% rise in second-quarter net income to $1.2 billion.
Adnoc Gas anticipates a significant increase in global demand for liquefied natural gas (LNG) as more countries begin importing the resource for the first time. This shift is expected to drive growth in LNG consumption, according to Adnoc Gas’ Chief Financial Officer Peter Van Driel.
To meet the rising demand from new markets, Abu Dhabi National Oil Co., Adnoc Gas’ parent company, is developing a new facility in Ruwais. This project is poised to more than double the UAE’s LNG export capacity by 2028. Additionally, neighboring countries such as Oman and Qatar are expanding their LNG production infrastructure.
In a recent interview with Bloomberg Television, Van Driel highlighted the substantial growth in the UAE economy and the increasing demand for LNG. He noted that many emerging markets are beginning to import LNG, although specific countries were not named. Adnoc Gas projects a 14% rise in global gas demand over the next decade, which is more optimistic than other forecasts. The International Energy Agency, for instance, predicts that LNG usage will peak by the end of this decade, potentially impacting oil and gas stocks.
Van Driel elaborated on the decision to build the Ruwais LNG facility, expressing confidence in having adequate gas reserves, understanding the construction costs, and ensuring the LNG could be successfully marketed. This strategic move is part of a broader plan to address the anticipated growth in global gas demand.
The company's performance reflects this optimistic outlook. Adnoc Gas shares saw an increase of up to 4.3% on Monday, following a 21% rise in net income for the second quarter, reaching $1.2 billion compared to the previous year.
