ADNOC Gas Under Van Driel: Fueling UAE Growth Through Strategic Investments

The United Arab Emirates’ energy landscape is undergoing a transformation, and ADNOC Gas, under the guidance of CFO Peter Van Driel, is at the forefront of driving this shift. With a laser focus on capital expansion, financial discipline, and strategic partnerships, the company is positioning itself as a cornerstone of the UAE’s energy infrastructure and global LNG exports. Here’s why investors should take notice.

The CapEx Engine: Fueling Capacity Growth

At the heart of ADNOC Gas’s strategy is a $15 billion capital expenditure (capex) plan through 2029, aimed at expanding gas processing capacity by 30% to over 3.35 billion cubic feet per day. This investment is critical to meeting the UAE’s domestic gas demand, projected to grow at 6% annually through 2030, and capitalizing on rising global LNG demand.

The capex push is already bearing fruit. In Q1 2025 alone, ADNOC Gas reported a 7% year-on-year rise in net profit to $1.27 billion, driven by robust domestic sales and efficient management of maintenance shutdowns. A key project, the Ruwais LNG facility, set to operationalize by 2028, will double ADNOC’s LNG production capacity to over 15 million tons per annum, with a carbon intensity 50% lower than global peers.

Financial Fortitude and Shareholder Returns

Van Driel’s financial acumen shines in ADNOC Gas’s balance sheet. In 2024, the company delivered a record $5 billion in net income and $8.65 billion in EBITDA, up 13% and 14%, respectively, from 2023. This strength enabled a $3.41 billion dividend payout for 2024, with a final $1.7 billion installment expected in Q2 2025. The dividend policy aims for 5% annual growth, supported by a $4.58 billion free cash flow in 2024—far exceeding payout needs.

The CFO has also prioritized broadening ADNOC Gas’s investor base. A $2.84 billion marketed share offering in early 2025 increased the free float by 80%, paving the way for inclusion in global indices like MSCI and FTSE Emerging Markets by late 2025. This move could attract billions in institutional capital, enhancing liquidity and valuation multiples.

Strategic Partnerships and Global LNG Demand

ADNOC Gas’s growth hinges on securing long-term LNG supply agreements. In 2025, it inked a $9 billion, 14-year deal with India’s Indian Oil Corporation, supplying 1.2 million tons of LNG annually starting 2026. This follows a $450 million three-year agreement with Japan’s JERA, leveraging its Das Island liquefaction facility. These partnerships underscore the company’s 60% stake in the UAE’s gas reserves and its ability to serve over 20 global markets, from Asia to Europe.

Sustainability and Decarbonization

Van Driel’s strategy isn’t just about growth—it’s about responsible growth. ADNOC Gas’s Ruwais LNG plant will use clean grid electricity and AI-driven efficiency tools, reducing its carbon footprint. The company is also advancing $3.8 billion in offshore electrification projects to power operations with renewable energy, aligning with the UAE’s Net Zero by 2050 goals.

Leadership and Execution

Van Driel’s expertise—30 years in energy finance, including roles at Shell—anchors ADNOC Gas’s execution. Under his leadership, the company has streamlined operations, secured critical capex approvals, and maintained a disciplined dividend policy. CEO Fatema Al Nuaimi’s focus on operational excellence complements Van Driel’s financial rigor, ensuring projects like the $2.1 billion Ruwais infrastructure contracts stay on track.

Conclusion: A Compelling Investment Thesis

ADNOC Gas presents a compelling opportunity for investors seeking exposure to UAE energy growth and global LNG demand. With its $15 billion capex pipeline, record financials, and strategic partnerships, the company is well-positioned to achieve its 40% EBITDA growth target by 2029. Key catalysts include the Ruwais LNG plant’s 2028 completion, potential index inclusion by late 2025, and rising Asian LNG demand—projected to double by 2040.

For investors, ADNOC Gas offers a high-yield dividend (currently yielding ~5%) backed by $4.58 billion in free cash flow and a 9% free float growing to 17% by year-end. Risks include oil price volatility and project delays, but Van Driel’s track record and the UAE’s strategic support mitigate these concerns.

In a world hungry for energy security and sustainable solutions, ADNOC Gas is turning strategy into results—and investors would be wise to fuel their portfolios with this UAE powerhouse.