ADNOC Gas: 80% Contracts From Ruwais LNG Project Sold

Bloomberg

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00:00You don't have to be a math whiz to determine that, you know, more than half of those future

00:06dividends are going to be coming from Adnog Gas. I guess this is really just a reflection

00:09of how strong not just the business has performed, but your outlook going into 2030.

00:16Absolutely. Adnog Gas has a market cap of $75 billion. So it's a large company in the portfolio

00:23of Adnog. And I'm quite pleased to now basically signal to the market how confident we are

00:31in our growth ambitions. We're going to spend $20 billion. That's committed to CapEx. We're

00:37going to grow our production capacity by 30%. And our EBITDA will grow by more than 40% in

00:45the period up to 29. And we want to share with our investors that success. And that is why

00:52we've said we're going to extend the dividend that grows every year by 5% up to the period

00:59of 2030. It is really a testament to the confidence and the success of the growth of Adnog Gas.

01:07Yeah. Can I just ask you, you know, sort of macro outlook questions? I've been reading a lot,

01:13you know, the last couple of days about the huge amount of supply of LNG that's going to

01:17be hitting the market over the next couple of years. Are you anticipating a supply glut in the

01:24next few years in the run up to 2030?

01:29So Huawei's LNG is one of the company's entities that we invest in. It's a large project that will

01:37add 9.6 MTPA to our portfolio. At the same time, Adnog Gas is also the entity that supplies the

01:46processed gas to Huawei's LNG. So Adnog Gas will benefit as a supplier of the gas to Huawei's and

01:53also as a shareholder, 60% of Huawei's LNG. Now, this project will sell its first cargo late 28th.

02:01And it's very impressive to see that we've been able to sell 80% of all these volumes

02:09already back in 24. So in that sense, the company has been able to position the project very well

02:16in the market. 80% of the contract sold. And that gives us quite a lot of resilience. And in that sense,

02:23we are less impacted by what happens in the market. The buyers want security of supply,

02:29and we're able to offer the buyers such security.

02:35What about signals coming through from within the UAE? What does the gas demand picture look like here?

02:41Again, with the view that there has been a massive build-out, especially in data centres,

02:46and that requires a lot more power. How does the domestic picture look?

02:51The domestic market has been extremely strong performance for Adnog Gas. You will see that

02:59we will flag for the third quarter that again, in a lower oil price environment, some 14% lower,

03:06we're going to deliver $1.3 billion of net income. And part of that strong performance comes from the

03:13local market. If you look at the GDP growth and the population growth in the UAE, everybody then

03:22uses our energy, right? We are the sole supplier, for example, for the heavy industries in the UAE.

03:30And we benefit from the growth in the UAE. We're quite positive. You look at the GDP number of about

03:365% growth, and our outlook for the UAE in the coming years is extremely optimistic, given all the

03:43activities that go on. And definitely, data centres will need power. And some of that power will for sure

03:50come from gas. And we are the ones who can provide the gas to those data centres.

03:57Yeah. Are you confident that you have enough gas to supply to those UAE customers?

04:05Adnog Gas benefits from a long-term supply arrangement with Adnog. So when Adnog increases its production,

04:14we benefit in form of more gas coming to us. We process that gas and sell it into the international

04:21market, but also, like you just said, largely into the domestic market. About two-thirds of our gas

04:27flows into the UAE, keeps the lights on, makes sure there's cooling, you name it. And as I said,

04:34PETCAM, data centres, heavy industries, and the power sector are all supplied by Adnog Gas.

04:40Thank you for listening to us.

04:42więc,

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