Oil & Gas

Adnoc Gas, one of the world’s largest natural gas producers, has set ambitious targets to boost its earnings by over 40% by 2029. The Abu Dhabi-owned company outlined plans to ramp up gas supply in response to rising demand, particularly in Asia and the United Arab Emirates. Adnoc Gas aims to achieve this growth through substantial investments that will increase gas production volumes, with an investment allocation of $15 billion over the next five years. These efforts are part of the company’s broader strategy to capitalize on the global demand for natural gas, which is widely seen as a cleaner alternative to coal.

The company’s plans are also aligned with the UAE's broader vision to become a leading global exporter of gas. A key component of this strategy is the development of the Ruwais LNG facility, which will more than double the UAE’s liquefied natural gas (LNG) export capacity. Adnoc Gas intends to acquire a 60% stake in the Ruwais LNG project from its parent company, Adnoc Group, by 2028. This investment underscores the growing importance of LNG as a transitional fuel to lower carbon emissions, with global demand for LNG forecast to increase by more than 50% by 2040, according to Shell.

Domestically, Adnoc Gas expects gas demand within the UAE to rise by 6% annually through the end of the decade, driven by economic growth and population expansion. The company currently supplies around 60% of the UAE’s gas needs. The growth in domestic and international demand has already begun to reflect in Adnoc Gas’s financial performance. For the third quarter, the company reported an 11% year-over-year increase in net profit, reaching $1.24 billion, surpassing analyst expectations. This performance was buoyed by higher sales volumes and prices for export-traded liquids, despite a global downturn in oil prices.

In addition to its growth prospects, Adnoc Gas remains committed to returning value to its shareholders. The company reiterated its dividend guidance of a 5% annual increase through 2027, with a planned $3.4 billion dividend payout in 2024. This stability, along with a 12% rise in its stock price over the past six months, highlights investor confidence in the company's long-term strategy. Adnoc Gas’s strong earnings performance and growth trajectory set the stage for the company to solidify its position as a key player in the global energy market.