Abu Dhabi National Oil Company (Adnoc) has set up a gas processing company, Adnoc Gas, capable of handling up to 10 billion cubic feet per day of gas, making it one of the largest gas processing and marketing companies in the Middle East.

The emirati state giant confirmed the development on Tuesday and said the new entity, Adnoc Gas, has been formed effective 1 January and combines two of its largest gas companies — Adnoc LNG and Adnoc Gas Processing.

“As Adnoc grows its gas production and processing capacity, the combined scale and capabilities of Adnoc Gas will maximise value and create new opportunities for Adnoc, its partners, (and the United Arab Emirates),” it noted.

Adnoc last year highlighted its intent to proceed with the consolidation of its gas processing and marketing business into Adnoc Gas, which will “serve a wider range of domestic and international customers with an expanding portfolio of gas products”.

Adnoc stated that Adnoc Gas “is expected to unlock significant financial and operational opportunities”.

“The new company will be more agile, better able to respond to changing market demands, and well-positioned to take advantage of strategic opportunities for future growth,” it said.

IPO plans

Adnoc said it “intends to proceed with an initial public offering (IPO) of a minority stake in Adnoc Gas on the Abu Dhabi Securities Exchange (ADX) during the course of 2023, subject to applicable regulatory approvals”.

"The company will make further announcement in relation to the intended IPO in due course,” it added.

Adnoc group chief executive Sultan Ahmed Al Jaber said the formation of the new company “represents another major milestone in unlocking the full value of the UAE’s vast natural gas resources”.

“Natural gas will be a critical fuel in the energy transition and Adnoc Gas, through its world-scale operations and significant growth and expansion plans, will be well-positioned to meet both local and international gas demand,” he added.

Leading producer

The company earlier said the formation of Adnoc Gas “builds on Adnoc’s more than 40 years of experience as a leading gas producer”.

“The consolidation of Adnoc’s gas processing and LNG operations will create one of the world’s largest gas processing entities with a capacity of around 10 billion cubic feet per day of gas across eight sites, both onshore and offshore, and a pipeline network of over 3250 kilometres,” it earlier noted.

Adnoc said the existing Adnoc LNG and Adnoc Gas Processing joint ventures will receive operations and maintenance services from Adnoc Gas.

Adnoc LNG involves Japan’s Mitsui & Co, UK supermajor BP, and French giant TotalEnergies, while Adnoc Gas Processing comprises UK supermajor Shell, TotalEnergies, and Thailand’s PTTEP.

Adnoc is building the 10 million tonnes per annum Fujairah liquefaction terminal and aims to emerge as a long-term exporter of LNG, while also achieving domestic self-sufficiency of natural gas in the country.

It is also spending billions of dollars on developing the complex Hail & Ghasha sour gas fields, which could add to up to 1.5 Bcfd of gas production in the coming years.

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