< Previous88 “ADNOC produces some of the world’s least carbon-intensive oil and this new target will provide the company with greater flexibility to meet rising global energy demand,” the company said in a statement. Brazil’s state-owned Petrobras has also announced plans to raise spend by over 30% year-on-year to deliver 500 to 600 kb/d in incremental FPSO capacity. More Gas Production NOCs are also expected to play a crucial role in expanding gas supply. QatarEnergy will continue its major LNG expansionary phase. Qatar, which is heavily courted for its gas supplies as European nations turn away from Russia, is building six new liquefaction trains to boost the country’s LNG export capacity by 48 million b/d to hit 126 million mt/year by 2026, under a plan first unveiled in 2017. Also, the soaring demand for Qatari LNG has led to a whopping rise in state revenues and cemented QatarEnergy’s position as one of the most important resource companies in the world.Algeria’s Sonatrach and Nigeria’s NNPC are also inking deals with Europe and its neighboring countries like Morocco to fill in for Russian gas. While exporters will focus on investments to ramp up production capacity, importers will emphasise on domestic investments. Big import bills and security concerns will incentivise domestic spending for those with oil and gas resources. Homegrown shale gas will move up in PetroChina and Sinopec’s capital allocation pecking order. Some players like Malayisa’s Petronas and India’s ONGC will lean more toward exploration to boost domestic gas resources. ONGC has unveiled a three-year plan to execute multiple projects worth at least $7.3 billion and involving key developments offshore the west and east coasts. The state-owned company also plans on launching several sizeable offshore engineering, procurement and construction projects until 2025, involving a mix of brownfield and greenfield projects. International Cooperation The energy trilemma could drive new alliances or strengthen old relationships. The Chinese NOCs may be more active in the Middle East and Latin America to reduce their reliance on Russia. During Chinese President Xi Jinping’s recent visit to Saudi Arabia, dozens of agreements were signed between Chinese and Saudi companies, demonstrating deepening trade ties between the two countries. One agreement was signed between Saudi Aramco and China’s Shandong Energy, which includes a potential crude supply agreement and chemicals products offtake deal, as well as exploring collaboration on integrated refining and petrochemicals in China. New NOC energy transition business models will start to crystallise in 2023, in much the same way they did for the Euro Majors in the late 2010s, and for the US Majors in 2021. NOCs are expected to be more involed into renewables because of which majors and IOCs that can support technology and commercial frameworks will have opportunities to forge new partnerships or renew the existing ones.WORLD ENERGY TRANSITION LEADERS Published by and © 2023 ITP Media Group. All rights reserved. Next >