UAE’s Adnoc Seeks Deals for Gas Fields in Major US Push

Abu Dhabi National Oil Co. is seeking to buy its first natural gas producing fields in the US to deepen its presence in the country.

Summary by Bloomberg AI
Adnoc’s interest in gas producing assets comes at a time when market-watchers are expecting a slowdown in dealmaking in US upstream assets, particularly in the shale industry.

Summary by Bloomberg AI
Buying into gas-producing fields would give Adnoc access to both fuel and feedstock for its chemicals plants and LNG export facilities, and would also benefit from any increases in local gas prices.

Summary by Bloomberg AI

The United Arab Emirates’ biggest oil company is seeking to buy its first natural gas producing fields in the US to deepen its presence in the country, according to people familiar with the matter.

Abu Dhabi National Oil Co. wants the deals to complement its recent acquisitions of chemical plants and liquefied natural gas export facilities in the US, said the people, who asked not to be identified discussing confidential information.

Adnoc Chief Executive Officer Sultan Al Jaber is set to outline the government-owned producer’s investment strategy, including a US focus, during a speech at the CERA Week energy conference in Houston on Tuesday, according to some of the people. He’ll then visit Washington, DC for meetings related to both his roles at Adnoc as well as his position as minister of industry and advanced technology.

The UAE’s approach is likely to appeal to US President Donald Trump’s drive to attract investment to America and boost energy production. Emirati companies have discussed building data centers in the US and the two countries are cooperating in technology and artificial intelligence initiatives. Firms from Japan to India have said they’re looking for more energy deals.

It’s not yet certain if Adnoc has a specific acquisition target, or if the company will end up making an offer for an asset. Adnoc declined to comment.

Shale Dealmaking

The company’s interest in gas producing assets comes at a time market-watchers are expecting a slowdown in dealmaking in US upstream assets, particularly in the prolific shale industry as some of the best targets have already been snapped up. Still, in the first month of the Trump administration, the appetite for deals was showing some signs of revival.

Adnoc has been one of the most active energy dealmakers globally over the past year, buying assets from the US and Europe to Africa. In 2024, it acquired a stake in NextDecade Corp.’s LNG export project in Texas, marking its first ever US acquisition along with a 20-year supply deal. That was followed by a stake in Exxon Mobil Corp.’s proposed hydrogen project, also in Texas.

This month, the UAE company and OMV AG agreed on terms to create a chemicals giant worth more than $60 billion, a deal that includes the joint purchase of Nova Chemicals that has facilities on the US Gulf coast.

Buying into gas-producing fields would give Adnoc access to both fuel and feedstock for its chemicals plants and LNG export facilities. It would also benefit from any increases in local gas prices, hedging its exposure as a buyer of the fuel.

Adnoc last year announced it was setting up a new company known as XRG to focus on international gas and chemical deals. The firm will have an enterprise value of $80 billion, which it aims to double within a decade. XRG is set to take over ownership of Adnoc’s shares in all of the US facilities.