Abu Dhabi National Energy Company (TAQA), the largest energy producer in the United Arab Emirates, plans to reduce its activity in the oil and natural gas sectors, and to shift towards more renewable energy sources, as part of its new strategy to restructure its business.
TAQA, which acquired most of the state-owned Abu Dhabi Energy Corporation last year, announced that it will increase its electricity production capacity in the UAE to 30 gigawatts by 2030, from 18 gigawatts now, with renewable energy accounting for 30% of the company’s portfolio.
Issuance of bonds
Energy producers around the world are searching for greener options as economies switch to cleaner fuels amid calls to fight global warming. The UAE is the third-largest oil producer among OPEC countries, with a production capacity of 4 million barrels per day, and it relies on crude oil exports as a major part of its national income.
“The company’s focus will be on electricity and water, and to a lesser extent on oil and gas,” said Jasim Hussein Thabet, CEO of TAQA, in an interview with Bloomberg TV, pointing out that TAQA is in no hurry to sell its assets. When it seeks to reduce its operations in the oil and gas sectors.
TAQA has a presence in 11 international markets, as it has hydrocarbon assets concentrated in North America, including gas production fields in Canada. As for the Middle East, the company has electrical power plants in the Kingdom of Saudi Arabia, Morocco, and North African countries, and it plans to add 15 gigawatts of electric power internationally and aims to expand mainly in the countries of the Gulf Cooperation Council, especially Saudi Arabia, and Morocco as well.
Thabet revealed that the company is aiming to issue bonds this year to finance the repayment of its debts due in July and at the end of 2021, totaling $ 1.5 billion.
TAQA, the largest company listed on the Abu Dhabi Stock Exchange, also plans to invest 40 billion dirhams ($ 10.9 billion) to develop the transmission and distribution of energy and water sectors in the UAE, according to the company’s strategy.