ADNOC To Avail $3 Billion Credit Facility from JBIC

The Japan Bank for International Cooperation (JBIC) Governor Hayashi Nobumitsu on Thursday signed a general agreement with Abu Dhabi National Oil Company (ADNOC) in Tokyo to provide a credit line with ADNOC amounting to up to $3 billion.

Of this facility, JBIC’s share is $1.8 billion, under its Global Action for Reconciling Economic Growth and Environmental Preservation (GREEN) operations.

The credit line is intended to provide the funds necessary for projects related to decarbonisation and the energy transitions implemented by ADNOC or its subsidiaries in the UAE or internationally.

ADNOC is a leading energy company wholly owned by the Emirate of Abu Dhabi with a clear intent to decarbonise its operations. ADNOC has an ambition of achieving net zero emissions by 2045, promoting renewable energy, hydrogen and ammonia as a fuel source, carbon capture and storage (CCS), and other green energy initiatives.

CCS is a technology that separates and captures carbon dioxide that would otherwise become a greenhouse gas and stores it in deep waterbeds or geological formations.

As a stable and important supplier of crude oil to Japan for more than 40 years, Abu Dhabi is a strategic partner and very important ally for Japan’s energy resource strategy. In addition, Abu Dhabi has high potential in the sector of decarbonisation and energy transition as it has abundant resources for renewable energy and subterranean structures suitable for CCS, JBIC said.

The credit line aims to support ADNOC’s initiatives for decarbonisation and create opportunities for collaboration between Japanese companies and ADNOC, and it is expected to contribute toward realising the decarbonized societies that Japan and UAE are aiming for.

Adnoc Group’s Chief Financial Officer Khaled Al Zaabi said that they were pleased to once again partner with JBIC on ADNOC’s first green funding to accelerate its decarbonisation and energy transition initiatives.

“Proceeds of this credit facility will enable ADNOC’s strategy to support a just, orderly and equitable global energy transition. The agreement also marks the next milestone in the long-standing strategic energy relationship between the UAE and Japan, and we look forward to further collaboration with JBIC as ADNOC delivers against its ambitious growth strategy,” he said.

ADNOC’s Decarbonisation Plans

ADNOC is one of the least carbon-intensive oil and gas producers in the world and is further reducing its carbon intensity by 25% by 2030 while investing $23 billion to decarbonise its operations and accelerate the growth of the energies of the future, including hydrogen, geothermal, renewables and carbon capture technologies.

ADNOC has also set out its ambition to achieve net zero by 2045 and zero methane emissions by 2030. The company is also a founding member of the Oil and Gas Decarbonisation Charter (OGDC), a coalition of International and National Oil Companies that have committed to zero methane emissions by 2030 and net zero by or before 2050.

It may be recalled that the two companies signed a loan agreement at the beginning of the year for up to $2.1 billion to help ADNOC secure long-term oil supplies. Seven other Japanese firms, including the Bank of Tokyo-Mitsubishi UFJ, will provide additional financing, taking the total loan amount to $3.3 billion.