Fatema Al Nuaimi, CEO of ADNOC LNG. Image Credit: Supplied

Energy security is a multi-dimensional and complex problem that cannot be solved if one is driven by emotions, said Fatema Al Nuaimi, CEO of ADNOC LNG, on the sidelines of the ADIPEC exhibition in Abu Dhabi on Tuesday.

“It’s different from one region to the other. It’s a complex situation (that) needs to be built on a foundation… it needs to have more specialised, intelligent people in a room to mould it.”

Al Nuaimi said that energy, to her, is science and not politics. “It is something that needs to be engineered in a way that gives a country the right setup, infrastructure required for them to achieve that affordability, sustainability and secure energy source.” And she called upon the policymakers to build regulations around that agenda.

LNG push

According to Nuaimi, the 60-year-old industry has been one of the slowest growing ones because of the lack of investment.

“It’s a capital-intensive project, and it needs investments throughout the value chain,” said Al Nuaimi. “We (ADNOC) are one of the first producers in the Middle East and we chose to expand our production (LNG) after 50 years of establishment.”

As the world moves towards net zero, the push for LNG is gaining momentum in the energy sector. It produces 40 per cent less carbon dioxide than coal and 30 per cent less compared to oil.

Al Nuaimi added that Fujairah was positioned in a strategic location when it comes to LNG. It’s close to the emerging markets and ADNOC is halfway through to making it one of the lowest emission natural gas hubs.

Earlier this year, ADNOC announced its plans to build a new LNG plant in Fujairah. The plant is expected to produce as much as 9.6 million tonnes a year. The UAE currently has three liquefaction trains with a combined capacity of 5.8 mtpa.

Long-term demand destruction

The ADNOC LNG chief said that current energy prices were not sustainable. “Although producers enjoy when prices are high, the level of prices that we are seeing today is definitely not sustainable,” said Al Nuaimi. “Sometimes it’s because simple non-availability of alternatives. It’s not just the prices, it’s also the non-availability of that other option.”