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UAE Supports Responsible Energy Transition

UAE Supports Responsible Energy Transition

Tuesday, 29 November, 2022 - 09:30
UAE President Sheikh Mohammed bin Zayed Al Nahyan listens to a presentation on ADNOC's new strategy. (WAM)

The UAE is committed to remaining a responsible global energy provider and enabling a more sustainable future, announced President Sheikh Mohammed bin Zayed Al Nahyan.

Sheikh Mohammed noted that the UAE would support the efforts to ensure a responsible energy transition by keeping pace with the future and investing in the essential opportunities it provides.

Speaking at the annual meeting of the Abu Dhabi National Oil Company (ADNOC) Board of Directors, in his capacity as its Chairman, Sheikh Mohammed directed the company to pursue a Net Zero by 2050 ambition to support the country's 2050 Strategic Initiative.

The board also approved ADNOC's strategy to accelerate growth across its value chain to meet rising energy demand and support global energy security responsibly.

As part of the strategy, ADNOC will establish a new Low Carbon Solutions & International Growth vertical focused on new energies, gas, liquefied natural gas (LNG), and chemicals, reported the state news agency (WAM).

The President stressed the importance of the steps taken by ADNOC to reduce carbon emissions in conjunction with its endeavor to develop and expand its operations to meet the growing global energy demand.

He praised ADNOC's efforts to drive industrial growth through its In-Country Value (ICV) program and its support for the "Make it in the Emirates" initiative.

The ICV program generated $9.54 billion in the nation's economy and enabled 2,000 UAE Nationals to be employed in ADNOC's supply chains.

At the meeting, the board endorsed plans to bring ADNOC's 5 million barrels per day (mmbopd) oil production capacity expansion to 2027, from the previous target of 2030, as part of the accelerated growth strategy.

ADNOC produces some of the world's least carbon-intensive oil, and this new target will provide the company with greater flexibility to meet rising global energy demand.

According to information released, ADNOC's plans to accelerate the implementation of the goal of increasing its production capacity of crude oil based on UAE's robust hydrocarbons reserves, which rose two billion stock tank barrels (STB) of oil and one trillion standard cubic feet (TSCF) of natural gas this year.

The additional reserves increase the UAE's reserves base to 113 billion STB of oil and 290 TSCF of natural gas, reinforcing the country's position in global rankings as the custodian of the sixth-largest oil reserves and the seventh-largest gas reserves.

Within the framework of the updated strategy, ADNOC announced the establishment of ADNOC Gas, a new world-class gas processing and marketing company, which will start operations in early January 2023.

The company will operate, maintain, and market the two ADNOC's gas processing and LNG operations through one integrated company.

The board directed ADNOC to proceed with an initial public offering (IPO) of a minority stake in the new company on the Abu Dhabi Securities Exchange (ADX) in 2023, subject to applicable regulatory approvals.

ADNOC's five-year business plan and capital expenditure (CAPEX) of $150 billion for 2023-2027 was approved to enable the accelerated growth strategy.

Minister of Industry and Advanced Technology Sultan al-Jaber lauded the vision and support of Sheikh Mohammed, adding that "through our Net Zero by 2050 ambition, we are placing sustainability at the center of our growth."

Jaber explained that the world needs maximum energy, minimum emissions, and all the energy solutions to ensure global energy security.

"ADNOC is committed to making today's energy cleaner while investing in the clean energies of tomorrow to strengthen our position as a reliable and responsible energy provider."

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