ADNOC Gas, the comprehensive natural gas processing unit of ADNOC, has awarded a contract of $1.34 billion to expand its pipeline network. ADNOC Gas stated in a statement on the Abu Dhabi Stock Exchange that it has signed agreements with Petrofac Emirates and a consortium composed of National Petroleum Construction Company and CAT International.

The transaction includes the construction of a natural gas compression plant in Habshan, as well as new pipelines, to expand the company's existing network from the current 3200 kilometers to approximately 3500 kilometers. The company stated that the pipeline expansion is expected to allow more natural gas to be delivered to customers in the United Arab Emirates, which will drive further growth of ADNOC Gas and support the company's strategy of increasing market share.

Our strategic network expansion will bring the advantages of low-cost, sustainable, and cleaner natural gas to more parts of the United Arab Emirates by strengthening industrial access to natural gas. Natural gas is a cost-effective and low-carbon fuel, "said Ahmed Alebri, CEO of Adnoc Gas. The expanded pipeline will drive further growth for ADNOC Gas and our shareholders as we fulfill our mission to achieve self-sufficiency in natural gas for the United Arab Emirates.

ADNOC Gas stated that it is expected that over 70% of the total contract value of the pipeline will flow back to the economy. The company has 95% of the natural gas reserves in the United Arab Emirates, estimated to be the seventh largest natural gas reserves in the world. It also supplies over 60% of the country's natural gas demand. In March, ADNOC raised approximately $2.5 billion by selling a 5% stake in its natural gas business, making it ADX's largest listed project and the world's largest initial public offering in 2023. The company sold over 3.8 billion shares, attracting strong demand from institutional and retail investors through its IPO, and generating over $124 billion in orders. This listing surpassed Bolu, which went public in June 2022 and raised $2 billion.

ADNOC Gas reported that despite a significant decline in oil and gas prices, its first quarter net profit increased by 9% as it optimized costs and maintained strong profit margins. The net profit for the three months ended March increased to $1.3 billion, while the adjusted net profit for the same period in 2022 was $1.2 billion. In May, ADNOC Gas signed a three-year supply agreement with TotalEnergies Natural Gas and Electric Power Company, a subsidiary of TotalEnergies in France, to export liquefied natural gas because of the increased demand for fuel in the global Energy crisis.

The International Energy Agency said in a report in February that with the surge in European demand, the region has reduced its dependence on Russian natural gas imports, and the global LNG trade volume will reach a high of 450 billion dollars in 2022.Editor/XingWentao