SPC approves ADNOC's 2030 strategy & 5 year plan
The new strategy is aimed at generating sustained growth in ADNOC's upstream, midstream and downstream segments in an evolving energy market.
Headed by His Highness Crown Prince Sheikh Mohamed bin Zayed Al Nahyan, the Supreme Petroleum Council (SPC) approved ADNOC’s 2030 strategy, five-year business plan and operational budget.
The new strategy is aimed at generating sustained growth in ADNOC’s upstream, midstream and downstream segments in an evolving energy market.
H.H. Sheikh Mohamed bin Zayed affirmed ADNOC has the unwavering support of UAE President His Highness Sheikh Khalifa bin Zayed Al Nahyan for the Vision.
Prior to the SPC meeting, H.H. Sheikh Mohamed bin Zayed officially inaugurated the new ADNOC headquarters. He said that the new headquarters underlines ADNOC’s importance as a critical pillar of the Abu Dhabi economy.
Under the 2030 Strategy upstream will remain ADNOC's most profitable business. The strategy reaffirms ADNOC’s intent to achieve a production target of 3.5mn bpd in 2018, an increase over today’s production of 400,000 bpd. There will also be a stronger focus on the application of new technologies for enhanced oil recovery and tapping into additional sour gas resources.
In line with increased sour gas production, ADNOC’s sulphur output will rapidly increase over the coming decade, making Abu Dhabi one of the world’s largest sulphur producer. As a result, ADNOC plans to maximise the value of its sulphur by working closely with key phosphate markets. Meanwhile, the company will continue supporting the development of a local sulphur products industry, including enhancing the existing ammonia and urea industry, with a new generation of advanced fertilisers.
In parallel with growing its crude production, the strategy is aimed at ensuring economical and sustainable gas supplies, as part of its fully integrated Gas Master Plan. The plan will facilitate ADNOC’s commitment to provide the gas necessary to meet Abu Dhabi’s growing demand. It has also embarked on a gas price restructuring exercise that will ensure a competitive price for its gas.
When it comes to downstream, ADNOC will focus on integrating its refining and petrochemicals business to capitalise on synergies to enhance profitability. It will grow domestic refining and petrochemical capacity, through focused investments in new projects, including gasoline and aromatics production and additional polyolefin capacity.
ADNOC aims to stretch the margin of each refined barrel of oil. Gasoline production will increase to 10.2 mtpa by 2022 to maintain Abu Dhabi’s self-sufficiency, with the new gasoline and aromatics project adding 4.2 mtpa of gasoline supply and 1.4 mtpa of aromatics in 2022.
Petrochemical production will grow from 4.5 mtpa in 2016 to 11.4 mtpa by 2025. The expansion will add polyolefin capacity and new petrochemical products coming from a world scale mixed feed liquid cracker.
The organisation will also introduce group wide procurement that will simplify the process of doing business with ADNOC, create greater understanding of ADNOC’s requirements and allow the group to optimise expenditure.