During the annual meeting of the Abu Dhabi National Oil Company (ADNOC) Board of Directors, presided over by UAE President and ADNOC Chairman Mohamed bin Zayed Al Nahyan, the company has decided to pursue a Net Zero by 2050 ambition.
ADNOC’s Net Zero by 2050 ambition covers its operational Scope 1 and Scope 2 greenhouse gas emissions (GHG). This goes in line with UAE’s Net Zero by 2050 initiative.
Further to focus on decarbonization, ADNOC plans to accelerate growth to meet the rising energy demand and support global energy security. As part of the strategy, ADNOC will establish a new Low Carbon Solutions & International Growth vertical focused on new energies, gas, LNG, and chemicals.
Sheikh Mohamed bin Zayed praised ADNOC’s steps to further reduce its carbon footprint as it expands its operations to meet rising global energy demand.
At the meeting, the board endorsed plans to bring forward ADNOC’s 5 million barrels per day 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.
The accelerated production capacity target is underpinned by the UAE’s robust hydrocarbon reserves, which have increased by 2 billion stock tank barrels of oil and 1 trillion standard cubic feet of natural gas this year. These 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.
The board endorsed the creation of ‘ADNOC Gas’, a new world-scale gas processing and marketing company, effective January 1, 2023. The flagship company will combine the operations, maintenance, and marketing of ADNOC Gas Processing and ADNOC LNG into one consolidated entity. ADNOC will proceed with an initial public offering of a minority stake in the new company on the Abu Dhabi Securities Exchange in 2023, subject to applicable regulatory approvals.
ADNOC’s five-year business plan and capital expenditure of $150 billion for 2023-2027 was approved to enable the accelerated growth strategy. As part of this plan, ADNOC aims to drive $48 billion back into the UAE economy through its In-Country Value program.
The company recently set a new upstream methane intensity target of 0.15% by 2025. ADNOC is also leveraging its partnerships to invest in and integrate low-carbon technologies and solutions to ensure a cost-effective decarbonization pathway.
Upstream, the increase in oil and gas national reserves was driven by deploying advanced technologies, applying best reservoir management practices, and optimizing field development plans. Downstream, the formation of ADNOC Gas builds on ADNOC’s more than 40 years of experience as a leading gas producer.
The consolidation of ADNOC’s gas processing and LNG operations will create one of the world’s largest gas processing entities with a processing capacity of around 10 billion standard cubic feet per day of gas across eight sites, both onshore and offshore, and a pipeline network of over 2019 miles.
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