Adnoc, the state oil company of the United Arab Emirates, has announced a $55 billion investment plan to strengthen its presence along the entire fossil fuel supply chain, from upstream (exploration and extraction) to downstream (refining and sale of finished products). The resources will cover a period from 2026 to 2028; by 2030, the total expected expenditure is $150 billion.
MORE INVESTMENTS OUTSIDE OPEC
Beyond the economic scale of the investment, the timing of the announcement is also interesting because it came shortly after the announcement of the United Arab Emirates’ exit from Opec, the organization of oil-exporting countries of which they were the third largest producer.
Officially, the Emirates left Opec because they believe the energy crisis caused by the war on Iran requires a speed of reaction that the organization’s decision-making processes do not allow. In reality, the Emirates had long been dissatisfied with the maximum production quota mechanism promoted by Saudi Arabia (which effectively leads the cartel) and wanted the freedom to sell more oil.
– Also read: What’s happening with oil, between the Opec+ announcement and Iran’s resistance
The Emirati Minister of Industry and CEO of Adnoc, Ahmed al-Jaber, explained that the company “is entering a crucial phase of implementing its strategy, characterized by scale, speed, and an absolute focus on results.”
THE EMIRATES TARGET THE UNITED STATES
Moreover, Adnoc intends to invest heavily – “tens of billions of dollars,” according to the Financial Times – in the United States to launch a division dedicated to natural gas and diversify its revenues. Recently, the company bought a stake in the Next Decade project for a liquefied gas terminal in Texas and holds a share in the Rio Grande LNG plant, also in Texas.
Nameer Siddiqui, head of investments at Xrg (Adnoc’s unit responsible for overseas investments), said that Adnoc wants to be present along the entire gas supply chain, from extraction to liquefaction, eventually owning processing plants in destination countries as well.
