The UAE is opening its arms and inviting new partners to join its drive towards energy transition, a top minister said in Abu Dhabi.
Dr Sultan Ahmed Al Jaber, UAE’s Minister of Industry and Advanced Technology, Managing Director and Group CEO, Adnoc, said the holding of Adipec is a “historic moment” as it comes right after the UN Climate Change Conference of the Parties (COP26).
“In balance, it (COP26) was a success, yet the current energy dynamics have revealed a basic dilemma. While the world has agreed to accelerate energy transition, it is still heavily reliant on oil and gas,” he said on the opening day of Abu Dhabi International Petroleum Exhibition and Conference (Adipec).
“As economies bounce back from the Covid-19 pandemic, at the fastest rate in 50 years, demand has outpaced supply. After almost a decade of under-investment in our industry, the world has sleepwalked into a supply crunch. It is time to wake up.”
Dr Al Jaber said that the energy transition of tomorrow cannot be done by unplugging from the energy system of today.
“The oil and gas industry will have to invest over $600 billion every year until 2030 just to keep up with expected demand. Yes, renewable energy is the fastest growing segment of the energy mix but oil and gas is still the biggest, and will be for decades to come. The future is coming but it is not here yet. We must make progress with pragmatism.”
Dr Al Jaber revealed that Adnoc will increase its production capacity to five million barrels per day by 2030. However, he pointed out that Adnoc through virtual geology and design has been able to offer some of the least carbon intensive barrels in the world.
“We were the first company to bring carbon capture and storage to the region. And we are expanding our capacity from 800,000 tonnes to 5 million (tonnes) per year.”
Highlighting further innovations to reduce carbon emissions, he said: “From January, up to 100 per cent of our grid power will come from clean sources, namely, nuclear and solar. In one move this will significantly reduce Adnoc’s operational emissions.”
Dr Al Jaber underlined that if the world is to resolve the dilemma of energy transition, the solutions can be found where the energy expertise exists.
“We will make this forum a catalyst for practical and sustainable energy solutions, which are both pro-climate and pro-growth.”
Dr Al Jaber said that Adnoc continues to attract new partners and noted Reliance Industries partnership for world-scale chemical projects at Ta’ziz in Ruwais.
“As the world demands more energy with fewer emissions, the UAE is open for business and ready to partner across the energy ecosystem.”
He pointed there are possibilities for partnership in every journey of sustainable development.
“For those of you who are our partners there is much more that we can do together. For those who are not yet working with us. Come and explore those opportunities. Let us remember the energy transition is exactly that, a transition. We must invest in the energy that the world needs today while we create the energy system of tomorrow. Accept the invitation that I extend to you today. Come and join us, join Adnoc, join the UAE and be our partners on the energy transition journey.”
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