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ADNOC ventures into gas exploration outside its borders with Mozambique agreement

by Dubaiforum

Abu Dhabi National Oil Company (ADNOC) continues to expand its presence in the global gas market with its latest acquisition of Galp’s 10% stake in the Area 4 concession of a major natural gas project in Mozambique’s Rovuma basin. This marks ADNOC’s fourth international venture in the gas sector, following a recent investment in a liquefied natural gas (LNG) export facility in Texas.

The move is part of ADNOC’s strategy to position itself as a key player in the gas and LNG market, alongside its focus on renewable energy and petrochemicals. The company aims to increase its LNG capacity from 6 million metric tons per annum (mtpa) to 15 mtpa in the near future.

The demand for natural gas has skyrocketed, particularly in Europe, amid efforts to secure alternative energy sources following geopolitical tensions. ADNOC’s acquisition of Galp’s stake in the Mozambique project is valued at around 0 million, with additional payments linked to future investment decisions.

The Area 4 concession includes existing and planned LNG facilities with a combined capacity exceeding 25 mtpa. This includes the operational Coral South Floating LNG facility, as well as upcoming developments such as Coral North FLNG and Rovuma LNG, expected to come online in the next few years.

ADNOC’s move aligns with its strategy to diversify its energy portfolio and support the global transition towards cleaner fuels. The company sees gas as a crucial component in this transition, as evidenced by its participation in global climate summits and investments in low-carbon energy projects.

In addition to its ventures in Mozambique and Texas, ADNOC has been actively pursuing opportunities in other regions, such as Egypt and Azerbaijan. The company is also developing a significant LNG project in its home country, the UAE, further solidifying its position as a key player in the global gas market.

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