ADNOC Gas hasn’t been able to export much liquefied natural gas or other products since late February, but the company has remained profitable and kept its investment plans intact thanks to domestic demand. The listed unit of Abu Dhabi’s state-owned energy company reported a 52% decline in second-quarter profit to $665 million.
The company awarded $8.2 billion in contracts for domestic gas projects, part of $28 billion in planned investment by 2030. Local demand is rising due to population growth, expanding petrochemical and industrial use, and new data centers. The UAE’s departure from OPEC is allowing ADNOC to pump more oil, which also gives it more gas to sell.
While the company has remained profitable during the war — and absorbed losses at facilities hit by Iranian strikes — it’s still reliant on passage through the Strait of Hormuz for much of its revenue. ADNOC Gas forecasts full-year earnings of up to $4 billion if normal flows resume through Hormuz by the fourth quarter, down from $5.2 billion last year.
