Abu Dhabi's ADNOC And Masdar Drive Global Energy Investments In 2024

Abu Dhabi's state energy companies, led by ADNOC and Masdar, have invested billions internationally in 2024, according to a report by Energy Intelligence. The investment push is ongoing. "While timelines for further deals aren’t clear, ADNOC continues to look out for opportunities across the globe, including in LNG, low-carbon hydrogen and chemicals," said the report citing sources familiar with the matter as saying.

ADNOC has made significant overseas investments this year. These include three major investments in LNG and low-carbon ammonia. They also began takeover talks with a German specialty chemicals firm and completed a fertiliser acquisition. Last year, ADNOC made its first international upstream deal by acquiring a 30% stake in Azerbaijan's Absheron gas field. Additionally, they purchased a 10% equity stake in UK carbon capture specialist Storegga.

Masdar is actively pursuing global investments to meet its target of 100 gigawatts of renewable energy capacity by decade's end. This aligns with Abu Dhabi’s strategy to diversify economically and reduce hydrocarbon reliance. Masdar has announced four deals in 2024 for renewable assets in the US, Greece, and Spain. Its global presence now spans around 40 countries across Africa, Europe, North America, and Asia-Pacific.

ADNOC's transformation from a conservative national oil company to an international energy player is notable. The company has diversified its portfolio across chemicals, gas, and LNG sectors. It aims to secure long-term demand for UAE’s hydrocarbon resources from refiners and petrochemical firms. This strategy positions ADNOC as a key supplier of fertilisers, gas, and future clean fuels like low-carbon hydrogen.

Masdar’s installed renewable power capacity has surged to about 31.5 GW through organic growth and mergers. The firm is also focusing on green hydrogen, which needs supportive policies to become competitive. Masdar’s international investments enhance Abu Dhabi’s global influence as it seeks leadership in green hydrogen.

The UAE aims to be a key energy supplier through entities like ADNOC and Masdar. Their efforts focus on global trade partnerships and infrastructure development. These initiatives ensure that UAE’s hydrocarbon resources remain relevant amid global decarbonisation efforts.

The report highlights that Abu Dhabi's strategic investments are crucial for positioning the UAE as a vital partner in global energy supply chains. By diversifying into renewables and clean technologies, the UAE strengthens its economic resilience while contributing to sustainable energy solutions worldwide.

With inputs from WAM