Tue 04-04-2017 12:59 PM
TOKYO, 4th April, 2017 (WAM) -- Strategic, value-added partnerships are the key to ADNOC’s growth plans, as the company seeks to ambitiously expand its business by opening new markets and offering new, diversified and high-value products, according to Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Abu Dhabi National Oil Company, ADNOC Group CEO.
Speaking at Gastech, the world’s leading gas and Liquefied Natural Gas, LNG, conference and exhibition, taking place in Japan, Dr. Al Jaber said that the industry needs to collectively rethink its partnership models in response to changing market dynamics.
"In this new energy era, the success of our industry and our companies will be driven by long-term, value-added and integrated partnership models across the value chain that leverage innovative technology and market access. Such integrated partnerships will require energy companies to think, plan and act differently to deliver future growth." the UAE Minister of State said.
He emphasised that technology and partnerships are at the heart of ADNOC’s growth strategy and five-year business plan, which aims to increase upstream capacity and expand its portfolio of downstream products. The company’s crude capacity output is slated to increase to 3.5 mbd by 2018 while its sour gas production, from its Al Hosn facility, will be expanded by 50 percent. ADNOC has also placed significant focus on its downstream business with plans to triple production of petrochemical and higher value products.
Al Jaber invited the industry to join ADNOC by shaping strategic partnerships that deliver technology, enhance market access and leverage value across the organisation's integrated upstream, midstream and downstream portfolio.
"In particular, we see tremendous opportunity in capitalising on emerging global downstream growth, which represents the fastest growing segment of the energy industry. We will work closely with industry partners who appreciate the scale of the opportunity, share our values and are willing to take risks in search of greater and stable rewards as we aim to grow new markets and offer new, diversified and high-value products to those markets," he said.
"The development and application of innovative technology across the entire value chain of our business will be essential to driving efficiency, performance and maximising value from every barrel we produce. We are especially focused on applying enhanced oil recovery technology to improve production levels and enhance value from our existing reservoirs," Al Jaber added The minister said that Asia is an increasingly important market for energy producers, noting its share of global gas imports will grow from half to two-thirds of demand by 2040, as global demand increases by 70 percent. "Today, what is needed is better infrastructure that efficiently links producers to end users," he said, adding, that to upgrade the global gas distribution system, between now and 2040 will require nearly US$3 trillion in investment as per the International Energy Agency, IEA.
Hailing the United Arab Emirates and ADNOC’s ties with Japan, Al Jaber described Japan as one of "ADNOC’s longest-standing partners and customers", highlighting that ADNOC delivers one-third of Japan’s oil and has been a reliable supplier of natural gas for over four decades. "Our experience with Japan is a clear example of how partnerships can advance industry, deliver economic growth and enable social progress," he added.