Adnoc sets sights on global trading dominance with expansion drive

10/11/2025 01:56 AST

Abu Dhabi's state energy giant Adnoc is preparing for one of the most important growth phases in its history, with its trading arm set to boost the volume of oil and refined products it handles by nearly two-thirds over the next few years.

The move is part of a sweeping international expansion strategy designed to position the UAE as a leading player in global energy trading and value creation.

Ahmed bin Thalith, chief executive officer of Adnoc Global Trading, said the company's rapid progress since its launch in 2018 reflects the UAE's broader strategy to diversify its energy revenues and deepen its footprint in global markets. "In only five years, we've established offices in Singapore and Geneva, and soon to come, in the US," bin Thalith told Bloomberg, noting that a new office in Houston is expected to open in 2027. "Trading enables us to capture greater value from every barrel we produce."

Adnoc's trading ambitions have evolved swiftly since the company created its marketing and trading businesses just seven years ago. The group now comprises two distinct but complementary arms: Adnoc Trading, which focuses on crude oil, and Adnoc Global Trading (AGT), a joint venture with Italy's Eni and Austria's OMV, specialising in refined products such as diesel, jet fuel, and gasoline. This dual structure allows Adnoc to participate across the entire value chain - from upstream production to refined product sales - enhancing profitability and flexibility amid shifting global demand.

According to market sources, Adnoc's trading entities already handle several million barrels per day, including both domestic and international flows. The planned 60-70 per cent increase in volumes would significantly expand the UAE's presence in global oil markets, placing Adnoc among the top-tier national oil company traders alongside Saudi Aramco Trading, Equinor, and Shell.

The timing of this expansion is significant, market analysts note. Global energy markets are undergoing a structural transformation driven by volatile prices, evolving trade flows, and the gradual energy transition. For producers like Adnoc, trading provides a way to hedge against price swings while capturing more of the downstream value previously earned by intermediaries. Analysts say the strategy mirrors moves by other oil majors and national companies seeking to evolve from exporters to integrated energy traders.

"Adnoc's trading expansion is not just about moving more barrels - it's about mastering the full commercial cycle," said Rystad Energy analyst Louise Dickson. "By building a strong presence in key hubs like Houston, Singapore, and Geneva, Adnoc is effectively creating a global bridge between its production base in Abu Dhabi and consumers across Asia, Europe, and North America."

Houston's addition is particularly strategic. The US Gulf Coast remains one of the world's largest energy trading and refining centres, offering proximity to both North and Latin American markets. With the US emerging as a top exporter of crude and LNG, Adnoc's presence there will provide access to vital market intelligence and trading opportunities, enhancing its ability to respond to demand shifts and pricing trends.

The UAE's energy sector has been transforming rapidly to align with global shifts. Adnoc, which pumps over 4.6 million barrels per day, is investing heavily in refining, petrochemicals, and low-carbon solutions while expanding partnerships with global majors. It is also developing its Ruwais Industrial Complex into one of the world's most advanced refining and chemicals hubs. In parallel, Adnoc has listed several subsidiaries on the Abu Dhabi Securities Exchange - including Adnoc Distribution, Adnoc Gas, and Adnoc Drilling - as part of a broader strategy to unlock value and attract foreign investment.

Industry observers view the trading expansion as the next logical step in this evolution. By strengthening its commercial reach, Adnoc not only boosts its revenue potential but also helps the UAE fortify its position as a global energy hub. "Trading is now at the heart of national oil company strategies," said a leading Mena economist. "For Adnoc, it represents a critical lever for value creation, agility, and international influence - exactly what's needed in an era where the energy map is being redrawn."

He noted that as Adnoc gears up to scale its trading operations and embed itself in key global hubs, the company is redefining what it means to be an oil producer in the 21st century - agile, globally connected, and commercially driven.

Khaleej Times