ADNOC Gas leans on home market as LNG exports tumble, profit drops 52%
ADNOC Gas reported a sharp profit decline but stayed profitable by tapping rising domestic demand after its LNG exports fell sharply.
Since late February, ADNOC Gas has been unable to ship much LNG or related products, but domestic consumption has kept the business afloat. The listed subsidiary of Abu Dhabi’s state-owned energy group posted a 52% drop in second-quarter profit, down to $665 million, yet maintained its investment schedule. It signed $8.2 billion in contracts for on-shore gas projects, contributing to a broader $28 billion plan slated for completion by 2030.
Rising local demand stems from population growth, expanding petrochemical and industrial use, and the rollout of new data centres. The UAE’s departure from OPEC enables ADNOC to increase oil production, which in turn supplies more gas for the home market. Nevertheless, the company remains heavily reliant on the Strait of Hormuz for the bulk of its earnings, and it projects full-year profit of up to $4 billion if normal flows resume by the fourth quarter, down from $5.2 billion last year.
Why it matters
The story shows how a major energy producer can offset export losses with domestic demand, affecting regional gas supply and global markets.
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