ADNOC To Expand Refinery Capacity with USD 150 Billion Investment By 2027
UAE Set to Invest USD 150 Billion To Expand Its Oil & Gas Production Capacity
Amid the plunge in oil prior to the demanding 2023 recession, it was at the bottom of OPEC+ and (bullish) oil trader's list to witness extra supply coming in line; however, that is exactly what was proposed by the core gulf hub.
Recently, the United Arab Emirates, which sought to branch out from oil and turn into a crypto hub worldwide, is reverting to its speciality and goals to expand its global energy. It is particularly true concerning energy spending, in order to boost the production capacity of oil and natural gas.
Abu Dhabi National Oil Co. (Adnoc) will invest USD 150 billion during the next five years till 2027, more than its initial expenditure plan of USD 127 billion in the next five years declared last year.
By 2027, the investment will most likely raise the capacity of crude output to 5 million barrels a day, sooner than the earlier goal of 2030. Also, it is expected toarrive at a period when Aramco, the Saudi oil giant, is planning to enhance its output by 12 million by 2027.
In the Organization of Petroleum Exporting Countries, UAE holds the spot for the most significant producer after Saudi Arabia and Iraq. It is investing billions of dollars to boost its oil and gas production, even as the nation hopes to achieve net-zero carbon emissions by 2050.
Due to the price surges as a result of Russia’s invasion of Ukraine, oil producers heavily benefited for most of the year. Although Brent crude has come down to its last spot from where it started beginning of the year, in February, it rose to more than USD 100 a barrel.
Per a statement, Adnoc will be forming a new unit for processing and marketing gas. It will try to sell a small share of the business, known as Adnoc Gas, via a first public offering in 2023 in Abu Dhabi.
Adnoc, owned by the government, will be setting up an independent arm in order to carry out international expansion in chemicals, gas, and new energy sources.
The UAE, which evolved into the global hub of crypto activity after crackdowns in the majority of western and eastern nations, is the most significant producer in the Organization of Petroleum Exporting Countries, following Saudi Arabia and Iraq.
In Other News, ADNOC Refining Gets New International Partners
On Thursday, a collaborative venture company between Eni, OMV, and the Abu Dhabi National Oil Company (Adnoc) , declared that it joined a strategic agreement with Veolia Middle East, ADQ, and Vision International Investment Company in order to acquire its waste management operations in Al Ruways Industrial City.
The agreement that was signed at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) states that Veolia, ADQ, and Vision Invest consortium will possess and operate two world-scale waste management plants that will treat and dispose of industrial waste sustainably which was generated from Adnoc’s operations.
The accord is in favour of Adnoc’s function as the UAE’s economic growth and industrial diversification catalyst by drawing extra international funding and strategic alliances with Al Ruways. The collaboration will also improve the competition by Adnoc Refining if the company is allowed to concentrate on its core refining operations.
About ADNOC Refining
Abu Dhabi National Oil Company's subsidiary ADNOC Refining (TAKREER) is an oil and gas refining company that examines, purifies, makes, extracts produce and distributes petroleum products. The products offered by the company include petroleum products, crude oil, sulphur, finished products (comprising of naphtha), aviation turbine kerosene, unleaded gasoline, liquefied petroleum gases, gas oil, liquid sulphur, straight run residue, domestic kerosene, and others. TAKREER provides services like the refining and condensation of crude oil, granulated sulphur production in adherence with domestic and international specifications, as well as supplying petroleum products. The business's refinery operations are offered through AbuDhabi Refinery and Ruwais Refinery. TAKREER's headquarter is located in Abu Dhabi, UAE.
According to Procurement Resource, the article states that ADNOC (government-owned Abu Dhabi National Oil Company) will expand its Refinery Capacity with a USD 150 Billion Investment By 2027. By 2027, the investment will likely raise crude output capacity to 5 million barrels a day, sooner than the earlier goal of 2030.