UAE: ADNOC Group to invest heavily in oil, gas, and petrochemical sectors.

In line with the targeted expansion of the UAE’s oil and gas sector, the ADNOC Group of Companies plans to invest heavily in developing its activities over the next few years. As part of the ADNOC Group’s major expansion projects, the state-owned shipping company (ADNOC Logistics and Services) intends to invest $8 billion by 2029 to expand the capacity and capabilities of its tanker fleet, particularly gas and ammonia tankers. ADNOC Logistics and Services aims to be the preferred supplier for the ADNOC Group’s needs as it grows domestically and internationally. Therefore, the company has already allocated $5 billion to expand its current shipping fleet of 75 vessels, adding 27 new vessels to complement ADNOC’s gas-related projects. ADNOC Logistics’ latest annual report indicates that the company achieved record financial results in 2024, due to the expansion of its fleet operations and the increase in tanker rates due to the Red Sea disturbances. On another front, the ADNOC Group’s petrochemical sector is witnessing significant expansion, with ADNOC’s XRG subsidiary aiming to become one of the largest petrochemical companies in the world. ADNOC and OMV recently agreed on the terms for establishing the Borouge International Group, merging their polyolefins companies, Borouge and Borealis, into a single entity. The two parties expect the deal to close in the first quarter of 2026, creating a giant entity with a value exceeding $60 billion, making it the fourth-largest company in this sector after the China National Petroleum Corporation (CNPC), Sinopec, and Exxon Mobil.