ADNOC, JBIC ink $3bn green financing agreement

The Abu Dhabi National Oil Company (ADNOC) has signed a general agreement with the Japan Bank for International Cooperation (JBIC) to establish a $3bn (Dhs11bn) green financing facility.

This agreement follows a heads of agreement (HOA) signed between ADNOC and JBIC in January, further strengthening their longstanding partnership.

The credit facility is part of JBIC’s Global Action for Reconciling Economic growth and ENvironmental preservation (GREEN) lending programme and is partially supported by Japanese commercial banks.

Khaled Al Zaabi, ADNOC group CFO, stated, “We are very pleased to once again partner with JBIC on ADNOC’s first green funding to accelerate our decarbonisation and energy transition initiatives.

“Proceeds of this credit facility will enable ADNOC’s strategy to support a just, orderly, and equitable global energy transition. The agreement also marks the next milestone in the long-standing strategic energy relationship between the UAE and Japan, and we look forward to further collaboration with JBIC as ADNOC delivers against its ambitious growth strategy.”

ADNOC is committed to reducing carbon emissions

ADNOC, recognised as one of the least carbon-intensive oil and gas producers globally, is committed to further reducing its carbon intensity by 25 per cent by 2030.

The company is investing $23bn (Dhs84.4bn) to decarbonise its operations and accelerate the growth of future energies, including hydrogen, geothermal, renewables, and carbon capture technologies.

ADNOC has also set ambitious targets to achieve net zero by 2045 and eliminate methane emissions by 2030.

Moreover, ADNOC is a founding member of the Oil and Gas Decarbonization Charter, a coalition of International and National Oil Companies committed to achieving zero methane emissions by 2030 and net zero by or before 2050.

In other news, Saudi Aramco and ADNOC Group have been separately considering bids for Australian liquefied natural gas (LNG) producer Santos as the GCC energy giants seek to ramp up their gas investments overseas. Sources told Bloomberg that state-owned Aramco and ADNOC have been conducting preliminary evaluations of Adelaide-based Santos as a possible acquisition target.