Oil & Gas

ADNOC Gas is positioning itself to support a new wave of energy‑hungry hyperscale data centres in the UAE, which are being built to power generative AI, cloud computing, and expanded digital infrastructure—marking a potential growth driver as gas demand surges alongside the region’s AI infrastructure buildout. The state-controlled yet publicly listed utility posted a record second-quarter profit. The company, supplying around 60% of the UAE’s gas demand and exporting to over 20 countries, noted that while renewables are part of the energy mix, gas remains a key component. Peter Van Driel, ADNOC Gas’s chief financial officer, emphasized that although not every data centre will rely solely on gas, supplying even one or two represents “a real new demand centre” for the company.

For the first half of 2025, profit rose by 11% to $2.7 billion, and revenue ticked up to $12.1 billion Demand for ADNOC Gas’s LNG and LPG products remains robust, particularly in Asian markets where gas is rapidly replacing coal Meanwhile, strong demand is already building for the Ruwais LNG project, which is scheduled to ship its first cargo in December 2028, with 80% of its capacity reportedly sold—a sign that buyers are seeking supply security and diversification.

ADNOC Gas is ramping up its capital expenditure significantly. Full-year investment is expected to reach $3 billion, and committed capex over the next five years has increased from $15 billion to $20 billion following the first phase Final Investment Decision of its Rich Gas Development project. This aggressive investment strategy underscores the company’s commitment to expanding capacity and deepening its role in both domestic and international gas markets.

Following its addition to the MSCI Emerging Markets Index in June, ADNOC Gas is on track to join the FTSE Index in September—an inclusion expected to attract substantial passive fund flows. The company’s board has approved an interim dividend of $1.792 billion, a 5% year-on-year increase. Although the stock gained just over 1% following the announcement, it remains down more than 5% for the year to date.