ADNOC Boosts Downstream Investment Plans
Abu Dhabi National Oil Company (ADNOC) has merged its downstream unit with its trading arm, creating the Downstream Industry, Marketing & Trading Directorate. The company said the new unit will be a critical milestone toward its goal to responsibly deliver energy and energy products, particularly in its core Asian market, where it expects demand for refined and petrochemical products to grow over the next 10 years.
ADNOC said the decision reflects plans announced in 2018 to invest $45 billion together with partners to become a leading global downstream player, thereby leveraging its upstream assets. ADNOC and ADQ are aiming to attract more than $5 billion worth of investments for petrochemical projects through their joint venture TA'ZIZ.
With more resources in place, the new directorate expects to be able to meet demand through greater value chain optimization. ADNOC said this will facilitate more in-country value activities and accelerate the United Arab Emirates’ (UAE) post-Covid-19 economic growth through greater value chain optimization.
Plans for hydrogen alliance sealed
ADNOC is also planning to explore the potential for hydrogen and other new fuels as part of its initiative to cut its carbon intensity by another 25% over the next 10 years. Here, it said the planned new downstream directorate should be key to its ambition to capitalize on the emerging global market for hydrogen.
Together with their holding Mubadala Investment Company, ADNOC and ADQ have signed a Memorandum of Understanding to establish the Abu Dhabi Hydrogen Alliance, with which they hope to create a “trusted leader” of low-carbon green and blue hydrogen in emerging international markets.
The companies also plan to work together to build a “substantial” green hydrogen economy in the UAE. As a step in that direction, the alliance will develop a roadmap to accelerate the emirates’ adoption and use of hydrogen in major sectors such as utilities, mobility and industry, through their respective operating companies and with international partners.
Additionally, the partners plan to align their approach to international markets for projects developed under the alliance, toward making Abu Dhabi a reliable hub for sustainable hydrogen.
Author: Dede Williams, Freelance Journalist
