The Race for AI & Energy.. UAE's ADNOC Gas at the Center of the Global Equation

UAE's ADNOC Gas Company

 The Race for AI & Energy.. UAE's ADNOC Gas at the Center of the Global Equation

While the world's attention is focused on tech giants as the primary drivers of the AI ​​revolution, many overlook another hero behind the scenes: natural gas. The rapid advancement in AI capabilities depends not only on algorithms and processors, but also on the energy that powers the giant data centers that house these technologies.

Natural Gas: The Hidden Fuel Behind the AI ​​Revolution

As the use of AI technologies grows, natural gas will form the backbone that supports this revolution. The data centers that train and host AI models require massive amounts of energy, and their consumption is expected to double by 2030, driving up demand for electricity and, subsequently, natural gas.

Today, natural gas meets approximately 25 percent of global energy demand, but its role in the future will not be limited to meeting electricity demand alone. With the expansion of artificial intelligence, the shift to a green economy, and industrial expansion, global demand for natural gas is expected to increase by 56 percent by 2040, while demand for liquefied natural gas is expected to jump by 100 percent by 2050, driven by the expansion of artificial intelligence, industrial transformation, and global population growth.

For his part, Andrei Covataru, a senior fellow at the Atlantic Council's Global Energy Center, confirmed to Sky News Arabia that artificial intelligence has become one of the most prominent factors driving increased global demand for energy, especially natural gas. In his remarks on the Energy World program, Covataru explained that the expansion of data centers around the world, which are the primary driver of artificial intelligence technologies, requires accelerating the pace of energy generation, making natural gas a vital solution to support this transformation.

He added that natural gas not only supports traditional energy but also contributes to enhancing renewable energy production, making it a key component of the future energy mix. He pointed out that emerging economies rely heavily on natural gas as a primary source of energy, at a time when large quantities of coal are still used globally, opening the way for gas to become one of the most important products in the next phase.

ADNOC Gas: The UAE's Compass in the Smart Energy Landscape

In this landscape, natural gas producing companies with real competitive advantages—such as geographic proximity to markets and low production costs—are emerging as pivotal players in this next phase. Foremost among them is ADNOC Gas, which covers 60 percent of the UAE market's needs and exports its products to more than 20 countries around the world.

In this regard, Andrei Covataru emphasized, A senior fellow at the Atlantic Council's Global Energy Center, Covataru explained that the UAE enjoys a unique competitive position in the natural gas market, especially with the global expansion in demand for liquefied natural gas (LNG) in the coming years. Covataru explained that production costs play a pivotal role in determining a country's competitiveness, noting that producers' proximity to consuming markets represents a strategic advantage, especially in light of the ongoing transformations in the global energy market.

Ambitious Investments

ADNOC Gas intends to invest $20 billion to expand its production capacity, reflecting its vision to lead the next phase of the transformation in global energy markets. The company also recently approved a $5 billion investment in the first phase of the Rich Gas Development (RGD) project, which aims to expand the efficiency of processing facilities in several...

Enhancing Liquefied Natural Gas (LNG) Infrastructure

To support its exports and global competitiveness, ADNOC has awarded $2.1 billion in contracts to build the necessary infrastructure to support the Ruwais LNG project, including the preparation of processing and compression stations and the connection of LNG terminals. Pipelines between gas complexes and the offshore facility.