ADNOC Gas Plans to Invest $13 Billion Between 2024 and 2029

As part its five-year plan between 2024 and 2029, Abu Dhabi National Oil Company (ADNOC) Gas plans to invest over $13 billion in domestic and international growth opportunities, with its predictable margin business expected to increase our EBITDA by up to 40% by 2029.

Chairing the company’s Annual General Meeting (AGM), its chairman Dr Sultan Al Ahmed Jaber said that the company was also looking to increase its LNG export volumes in a growing global market. 

The AGM has also approved the Board of Directors’ proposal to distribute a full-year dividend of $3.25 billion to the shareholders. “Our aim is to acquire the new Ruwais LNG plant and more than double our LNG production capacity by 2028,” Al Jaber said.

An inaugural interim cash dividend of $1.625 billion was paid in December 2023, with a further $1.625 billion scheduled for distribution in the second quarter of 2024.

Dr Al Jaber said that ADNOC Gas recorded robust financial and operational results in 2023, has delivered on its dividend promise to shareholders, and is progressing several significant projects that will accelerate its future growth.

The company saw its share price surge 30% from its listing date in March 2023 to year-end, driving its market capitalisation to $65 billion and was ranked among the top 20 oil & gas companies in the world.

“Total shareholder returns, including the annual dividend, reached 35% in 2023. These exceptional achievements in a volatile gas market underscore our ability to deliver robust financial performance and growth throughout the commodity cycle,” he said.

Dr Al Jaber said that in 2023, ADNOC Gas made substantial investments to advance its growth strategy, awarding contracts worth $4.9 billion to expand the processing capacity and reach more customers. These projects will provide additional sales volumes of up to 20%.

“Our international sales momentum also grew in 2023 with the signing of liquefied natural gas (LNG) export agreements worth up to $12 billion, securing our returns in the coming years and capitalizing on the increasing global demand for LNG as a transition fuel,” he noted.

Financial Performance

ADNOC Gas delivered strong financial results in 2023, reporting revenues of $22.7 billion and a net income of $4.7 billion, exceeding market expectations and setting the foundation for further growth in 2024 and beyond.

The company intends to progressively increase the dividend it pays its shareholders by 5% year-on-year over the next four years, underscoring the strength and visibility of ADNOC Gas’ future cash flows.

ADNOC Gas CEO Dr Ahmed Alebri said that the company’s financial performance underpinned their confidence to expand their global footprint and explore new revenue streams that hold the potential to unlock additional value for shareholders.

“We are planning to more than double our LNG production capacity by strategically acquiring the new Ruwais LNG plant in the Emirates and aim to expand internationally by acquiring new positions in the gas value chain, targeting opportunities in Europe, India, China and South-East Asia if they add value to our business,” he added.

ADNOC Gas is well-positioned to benefit from ADNOC’s planned expansion of oil production capacity to five million barrels per day by 2027. In addition, ADNOC has announced its intention to take a final investment decision (FID) on the Ruwais LNG project in 2024, which ADNOC Gas plans to acquire.

In 2024, the Company will focus on processing and delivering increased volumes of gas to its customers and enhancing its product mix to meet the growing global demand for lower-carbon solutions.

Through two of its ongoing strategic projects, the Company will continue to expand its natural gas pipeline network and develop infrastructure to boost gas supply for its petrochemicals growth in Ruwais.