Adnoc Gas will ship liquefied natural gas cargoes to Europe or Asia depending on which market offers more profitability, a senior executive told The National.
The company, which is the integrated gas processing unit of Adnoc, produces 6 million tonnes per annum of LNG from its Das Island liquefaction plant off Abu Dhabi and most of the output is tied to long-term contracts, Peter van Driel, chief financial officer of Adnoc Gas, said in an interview on Thursday.
“We always keep a few cargoes available to play the market. If prices go up in Europe, we make sure those cargoes go to Europe,” Mr van Driel said.
“It then becomes a question of whether we see more profitability by going to the east or by going to Europe? And that is a function of price,” he added.
Persistent heatwaves in Asia are boosting gas demand in Japan and South Korea, while high inventory levels are driving down European gas prices. The EU's gas storage levels have reached about 90 per cent of capacity ahead of winter.
“Shipping plays a big role, because the sooner you're able to sail to a destination that's nearby, you have an advantage in terms of shipping cost compared to a competitor that comes from further away,” Mr van Driel said.
Adnoc Gas has not experienced a “material impact” from elevated shipping costs caused by the Red Sea shipping turmoil, he added.
Attacks on vessels by Yemen’s Houthi rebel group have disrupted global trade and led to increased insurance premiums, fuel costs and security measures for ship operators. The Suez Canal, a critical waterway connecting the Mediterranean Sea to the Red Sea, handled about 12 per cent to 15 per cent of global trade in 2023.
Adnoc Gas has signed long-term charter deals with shipping companies, protecting it from cost volatility, Mr van Driel said.
For the Abu Dhabi-based company, which has access to 95 per cent of the UAE's natural gas reserves, boosting exports of products such as LNG, liquefied petroleum gas and naphtha is crucial to its growth strategy.
“About one-third of our volumes are exported, and two-thirds remain in the UAE. However, our exports are more profitable because they account for two-thirds of the revenue,” Mr Driel said.
In the Emirates, Adnoc Gas supplies to customers, mostly utilities and industrial companies, through an extensive network of pipelines.
The company is set to acquire Adnoc’s majority stake in the Ruwais LNG project, which will have a total capacity of 9.6 million tonnes per annum. It is scheduled to start in the second half of 2028.
Last month, international energy majors BP, Japan’s Mitsui, Shell and TotalEnergies were each awarded a 10 per cent equity stake in the project.
About 70 per cent of the Ruwais LNG production capacity has already been secured through sales commitments.
Mr Driel said that Adnoc Gas remains open to mergers and acquisitions to expand into new markets, but the threshold for such moves is “very high” since operating in the UAE has been highly profitable for the company.
Adnoc Gas plans to invest more than $13 billion until 2029 to pursue domestic and international growth opportunities, the company said in an April statement.
Supply glut concerns
Adnoc Gas is expanding its LNG operations amid expectations of a market glut in the next few years, as several large projects are set to come online.
A surge in LNG projects starting from 2025 is projected to add more than 250 billion cubic metres (bcm) of new capacity annually by 2030, according to the International Energy Agency.
This additional capacity represents roughly 45 per cent of the current global LNG supply, with the most significant expansions occurring between 2025 and 2027, primarily driven by projects in the US and Qatar, the agency said in a report last year.
LNG buyers are locking in long-term contracts for future supply even though the market glut is expected to lower prices in the coming years, Mr van Driel said.
“Security of supply is what really matters. Therefore, people conclude long-term contracts, even if they know that there's a temporary imbalance between supply and demand. It's not just about price,” he added.
“Some buyers even pay a small premium to lock that in.”
In January, Adnoc Gas signed a 10-year agreement to supply 500,000 metric tonnes per annum of LNG to Gail India, a state-run natural gas company.
Emerging economies in Asia are aiming to increase the share of natural gas to reduce dependency on highly polluting coal amid an expected surge in power demand.
China, the world's biggest coal consumer, is projected to increase the use of natural gas in its primary energy mix to 12 per cent by 2030 from 8.7 per cent in 2020.
India, the second-largest coal consumer, aims to raise the share of natural gas in its total energy mix to 15 per cent by 2030, from about 6 per cent.
Mohammed bin Zayed Majlis
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• Architecture is over - here's cybertecture
• The National announces Future of News journalism competition
• Round up: Experts share their visions of the world to come
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
Zayed Sustainability Prize
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THE SPECS
Engine: 3.5-litre supercharged V6
Power: 416hp at 7,000rpm
Torque: 410Nm at 3,500rpm
Transmission: 6-speed manual
Fuel consumption: 10.2 l/100km
Price: Dh375,000
On sale: now
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The national orchestra
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ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
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• The National announces Future of News journalism competition
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War on waste
The Light of the Moon
Director: Jessica M Thompson
Starring: Stephanie Beatriz, Michael Stahl-David
Three stars
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The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
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Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
Fight card
Preliminaries:
Nouredine Samir (UAE) v Sheroz Kholmirzav (UZB); Lucas Porst (SWE) v Ellis Barboza (GBR); Mouhmad Amine Alharar (MAR) v Mohammed Mardi (UAE); Ibrahim Bilal (UAE) v Spyro Besiri (GRE); Aslamjan Ortikov (UZB) v Joshua Ridgwell (GBR)
Main card:
Carlos Prates (BRA) v Dmitry Valent (BLR); Bobirjon Tagiev (UZB) v Valentin Thibaut (FRA); Arthur Meyer (FRA) v Hicham Moujtahid (BEL); Ines Es Salehy (BEL) v Myriame Djedidi (FRA); Craig Coakley (IRE) v Deniz Demirkapu (TUR); Artem Avanesov (ARM) v Badreddine Attif (MAR); Abdulvosid Buranov (RUS) v Akram Hamidi (FRA)
Title card:
Intercontinental Lightweight: Ilyass Habibali (UAE) v Angel Marquez (ESP)
Intercontinental Middleweight: Amine El Moatassime (UAE) v Francesco Iadanza (ITA)
Asian Featherweight: Zakaria El Jamari (UAE) v Phillip Delarmino (PHI)
Our commentary on Brexit
- Alistair Burt: Despite Brexit, Britain can remain a world power
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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Read part two: how climate change drove the race for an alternative
Read part one: how cars came to the UAE
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• Round up: Experts share their visions of the world to come
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Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
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World Mental Health Day
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Tottenham's 10 biggest transfers (according to transfermarkt.com):
1). Moussa Sissokho - Newcastle United - £30 million (Dh143m): Flop
2). Roberto Soldado - Valencia - £25m: Flop
3). Erik Lamela - Roma - £25m: Jury still out
4). Son Heung-min - Bayer Leverkusen - £25m: Success
5). Darren Bent - Charlton Athletic - £21m: Flop
6). Vincent Janssen - AZ Alkmaar - £18m: Flop
7). David Bentley - Blackburn Rovers - £18m: Flop
8). Luka Modric - Dynamo Zagreb - £17m: Success
9). Paulinho - Corinthians - £16m: Flop
10). Mousa Dembele - Fulham - £16m: Success
THE%20FLASH
UAE tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures:
Monday, 1st 50-over match
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
Tomorrow 2021
Read more about the coronavirus
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part two: how climate change drove the race for an alternative
Dr Graham's three goals
Short term
Establish logistics and systems needed to globally deploy vaccines
Intermediate term
Build biomedical workforces in low- and middle-income nations
Long term
A prototype pathogen approach for pandemic preparedness
Jebel Ali results
2pm: Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner: AF Al Moreeb, Antonio Fresu (jockey), Ernst Oertel (trainer)
2.30pm: Maiden (TB) Dh 60,000 (D) 1,400m
Winner: Shamikh, Ryan Curatolo, Nicholas Bachalard
3pm: Handicap (TB) Dh 64,000 (D) 1,600m
Winner: One Vision, Connor Beasley, Ali Rashid Al Raihe
3.30pm: Conditions (TB) Dh 100,000 (D) 1,600m
Winner: Gabr, Sam Hitchcott, Doug Watson
4pm: Handicap (TB) Dh 96,000 (D) 1,800m
Winner: Just A Penny, Sam Hitchcock, Doug Watson
4.30pm: Maiden (TB) Dh 60,000 (D) 1,600m
Winner: Torno Subito, Sam Hitchcock, Doug Watson
5pm: Handicap (TB) Dh 76,000 (D) 1,950m
Winner: Untold Secret, Jose Santiago, Salem bin Ghadayer
War on waste
The five pillars of Islam
1.
2.
3.
4.
5.
Killing of Qassem Suleimani
National Editorial: Suleimani has been killed, now we must de-escalate
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Matthew Levitt: Iran retains its ability to launch terror attacks
Damien McElroy: A CEO tasked with spreading Iran's influence
Hussein Ibish: Trump's order on solid constitutional ground
Simon Waldman: Cautious Israel keeping a low profile
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
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Read part one: how cars came to the UAE
• Remittance charges will be tackled by blockchain
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• Could the UAE drive India's economy?
• News has a bright future and the UAE is at the heart of it
• Architecture is over - here's cybertecture
• The National announces Future of News journalism competition
• Round up: Experts share their visions of the world to come
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Michael Young: Israel's 'iron wall' is sealing the country off from peace
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Alexandra Chaves: Gazan artists paint to bring attention to the coronavirus
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SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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World Mental Health Day
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Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
Matthew Levitt: Iran retains its ability to launch terror attacks
Damien McElroy: A CEO tasked with spreading Iran's influence
Hussein Ibish: Trump's order on solid constitutional ground
Simon Waldman: Cautious Israel keeping a low profile
Rashmee Roshan Lall: Sound of silence in South Asia
Richard Olson: Why Afghanistan will be very wary
UAE%20Warriors%2033%20Results
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
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THE%20SPECS
Mohammed bin Zayed Majlis
The%C2%A0specs%20
CONFIRMED%20LINE-UP
War and the virus
Simon Rushton: War vet raises £12m for health workers
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Hussein Ibish: There are reasons for Democrats and Republicans to be happy
Rashmee Roshan Lall: Who are the women driving Joe Biden's success?
Killing of Qassem Suleimani
National Editorial: Suleimani has been killed, now we must de-escalate
Mina Al Oraibi: Air strike casts a long shadow over the decade ahead
Jack Moore: Why the assassination is such a monumental gamble
Matthew Levitt: Iran retains its ability to launch terror attacks
Damien McElroy: A CEO tasked with spreading Iran's influence
Simon Waldman: Cautious Israel keeping a low profile
Read more
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Getting%20there%20
• Remittance charges will be tackled by blockchain
• UAE's monumental and risky Mars Mission to inspire future generations, says minister
• Could the UAE drive India's economy?
• News has a bright future and the UAE is at the heart of it
• Architecture is over - here's cybertecture
• The National announces Future of News journalism competition
• Round up: Experts share their visions of the world to come
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
While you're here
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School uniforms report
Women’s World T20, Asia Qualifier
UAE results
Beat China by 16 runs
Lost to Thailand by 10 wickets
Beat Nepal by five runs
Beat Hong Kong by eight wickets
Beat Malaysia by 34 runs
Standings (P, W, l, NR, points)
1. Thailand 5 4 0 1 9
2. UAE 5 4 1 0 8
3. Nepal 5 2 1 2 6
4. Hong Kong 5 2 2 1 5
5. Malaysia 5 1 4 0 2
6. China 5 0 5 0 0
Final
Thailand v UAE, Monday, 7am
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- Alistair Burt: Despite Brexit, Britain can remain a world power
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Neighbourhood Watch
Sting & Shaggy
44/876
(Interscope)
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Zayed%20Centre%20for%20Research
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
