Abu Dhabi National Oil company (ADNOC) is working with investment banking company Goldman Sachs on the consolidation of its gas operations, reported Reuters, citing two sources familiar with the development.

The move forms part of ADNOC’s efforts to merge its two gas businesses into one consolidated entity, named ADNOC Gas.

Effective from 1 January 2023, the new gas processing and marketing company will combine the operations, maintenance, and marketing of ADNOC Gas Processing and ADNOC LNG.

ADNOC is planning an initial public offering (IPO) on the Abu Dhabi Securities Exchange (ADX) for a minority stake in ADNOC Gas in 2023, subject to the receipt of regulatory approvals.

The combined entity, which would be one of the world’s largest gas processing entities, will have a processing capacity of approximately ten billion standard cubic feet per day and more than 3,250km of pipeline network.

ADNOC boar has also approved a budget of AED550bn ($150bn) for the next five years to enable its growth strategy.

ADNOC managing director and group CEO and UAE Minister of Industry and Advanced Technology Dr Al Jaber said: “The world needs maximum energy, minimum emissions, and it needs all the energy solutions if we are to ensure global energy security.”

The Abu Dhabi oil company intends to focus on the European gas market, which is looking to replace all Russian energy imports as early as mid-2024.

Through this move, ADNOC aims to target European countries, which are desperately looking for alternate energy sources after Russia reduced supplies after Western sanctions, following its invasion of Ukraine.