ADNOC seeks to expand its energy trading business in Europe and Africa

by MMC
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Abu Dhabi National Oil Company (ADNOC) is looking to expand its energy trading business by increasing its presence in Europe and Africa, reported Bloombergciting sources.

ADNOC wants to fill the void left by Europe’s abandonment of Russian energy supplies, the sources said.

Established in 2020, ADNOC Trading is a wholly owned subsidiary of the ADNOC Group.

The United Arab Emirates (UAE)-based energy major is seeking long-term contracts for the delivery of liquefied natural gas (LNG), crude and refined fuels.

According to one of the sources, ADNOC plans to sign two to three long-term LNG supply agreements as well as several independent agreements over the next year.

Its main objective will be to expand into LNG, the report adds.

The boom in energy trading is part of its efforts to expand its operations across the world.

Recently, the German chemical company Covestro started talks with ADNOC for a potential buyout of 11.6 billion euros ($12.46 billion).

Last year, ADNOC considered acquiring all or part of trader Gunvor Group, which would have given it significant industrial clout and access to supply contracts with commodity traders.

However, the deal did not materialize and that is why the government-backed oil and gas giant is expanding its business operations from within.

Sources familiar with the development said that by the end of 2024, ADNOC Trading plans to open its first European office, in Geneva, and an office in Houston in 2025.

The company already operates a branch in Singapore specializing in chemical trading.

Although ADNOC produces a large amount of crude itself, it has also purchased oil from countries as far afield as Norway and Australia, as well as Angola, Yemen and Nigeria.

At least one Russian shipment and numerous shipments of Kazakh crude oil have arrived at Ruwais, an oil refinery in the Persian Gulf.

ADNOC seeks to build partnerships across Africa and Central Asia by leveraging relationships with local governments, the financial sector and various religious and cultural ties, the report said.

Earlier this year, ADNOC won part of a public tender for the supply of fuel to Kenya.

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