Adnoc group chief executive meets Indian premier Narendra Modi to discuss strengthening energy ties
Abu Dhabi invites Indian companies to invest in its downstream sector
State-owned Abu Dhabi National Oil Company (Adnoc) has invited Indian oil and gas companies to invest in its expanding downstream sector, as it looks to engage the world’s third-largest economy in developing its hydrocarbon resources.
Adnoc group chief executive and Minister of State Dr Sultan Al Jaber met Indian Prime Minister Narendra Modi at an energy leaders conference as the two sides seek to expand energy relations.
“We are keen to invite Indian companies into our ambitious downstream investment plans within the UAE,” said Dr Al Jaber.
“There are multiple opportunities to join us in partnerships that will generate attractive financial returns for strategic partners, while delivering long-lasting economic benefits for the UAE,” he added.
The UAE, which accounts for 4.2 per cent of global oil production unveiled a plan in May to invest up to $45 billion (Dh165.2bn) over the next five years with partners in its refining and chemicals sector as it shifts focus towards producing more high-margin products. Adnoc also announced formation of a joint venture with Saudi Aramco, the world’s largest oil producer to invest in a $44bn integrated refining and chemicals complex on the western Indian coast, along with a group of domestic state-backed refiners.
The development followed a two million barrel shipment of crude from Abu Dhabi to a strategic petroleum reserve in the southern Indian port city of Mangalore in May. Around 5.86 million barrels of crude storage have been made available to Adnoc at the site, with India allowed to use the entirety of the resource in the event of an emergency and when required.
India is the world’s third-largest consumer of oil, much of it imported from the Middle East. While the subcontinent country has abundant domestic deposits of coal, it meets 80 per cent of its crude oil requirements through imports.
At his meeting with Mr Modi, the Adnoc chief reiterated that India’s energy security remained important for the UAE, which meets 8 per cent of the country’s demand for oil.
“India’s energy security is a top priority for the UAE and Adnoc,” said Dr Al Jaber.
“As Adnoc continues to explore opportunities internationally, we look forward to deepening our ties with Indian energy partners across the entire crude, refining, petrochemical and derivatives value chain,” he said.
Abu Dhabi is undertaking expansion of its downstream facilities at the refining hub of Ruwais, with a scheme under way to build the world’s largest integrated refinery with 1.5 million barrel-capacity by 2025.
Adnoc is also setting up a new derivatives and conversion park that will add to the hub’s manufacturing capabilities.