ADNOC looks to purchase U.S. natural gas fields as part of expansion strategy

(Bloomberg) – The United Arab Emirates’ biggest oil company is seeking to buy its first natural gas producing fields in the U.S. 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 U.S., said the people, who asked not to be identified discussing confidential information.

ADNOC CEO Sultan Al Jaber is set to outline the government-owned producer’s investment strategy, including a U.S. 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 U.S. President Donald Trump’s drive to attract investment to America and boost energy production. Emirati companies have discussed building data centers in the U.S. and the two countries are cooperating in technology and AI 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.

The company’s interest in gas producing assets comes at a time market-watchers are expecting a slowdown in dealmaking in U.S. 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.

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.