Global liquefied natural gas (LNG) demand is set to increase significantly as more countries adopt LNG imports, according to Peter Van Driel, Chief Financial Officer of Adnoc Gas. To cater to this growing demand, Abu Dhabi National Oil Co. (Adnoc) is constructing a new LNG plant in Ruwais, which will more than double the UAE’s LNG export capacity by 2028. This expansion aligns with similar initiatives by Oman and Qatar, who are also increasing their LNG production capabilities.
“We see growth in the United Arab Emirates economy, but equally if we look in particular at LNG, we see huge demand,” Van Driel stated in a Bloomberg Television interview. He noted the emergence of new LNG import markets but did not specify which countries are converting to LNG imports.
Adnoc Gas projects a 14% increase in global gas demand over the next decade, a more optimistic forecast compared to the International Energy Agency, which anticipates LNG demand peaking by the end of this decade.
“When we took our decision to build Ruwais LNG, we were confident of three things — we were confident that we had enough gas, we understood how much it would cost to build and we had to know we could sell all of the LNG,” Van Driel elaborated during a roundtable with reporters.
Financial Performance and Market Response
Adnoc Gas’s financial performance has been robust, with second-quarter net income rising 21% to $1.2 billion compared to the previous year. This positive financial outlook contributed to a 4.3% gain in Adnoc Gas shares on Monday following the announcement of their second-quarter results.
Strategic Implications
The expansion of LNG export capacity in the UAE, Oman, and Qatar underscores the strategic importance of LNG in the global energy market. As countries diversify their energy sources and reduce dependence on coal and oil, LNG is becoming a critical component of the energy transition. Adnoc’s significant investment in LNG infrastructure at Ruwais highlights its commitment to meeting future global energy needs while securing its position as a leading LNG exporter.
Conclusion
Adnoc Gas’s optimistic outlook on LNG demand growth, coupled with strategic investments in expanding export capacity, positions the UAE to play a crucial role in the evolving global energy landscape. The anticipated surge in global LNG demand and the UAE’s proactive measures to increase production capacity reflect the broader trend of countries transitioning towards cleaner and more flexible energy sources.
