ADNOC CEO decries "economic terrorism"

His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC managing director and Group CEO, chairman of Masdar and executive chairman of XRG, has said that weaponising the Strait of Hormuz is an act of economic terrorism with global impact far beyond energy markets

Speaking at CERAWeek, taking place in Houston, Texas, Dr. Al Jaber said, “Twenty-one miles wide. Twenty million barrels a day. Nearly a fifth of the world’s oil and gas. Over a third of the world’s fertilizer. Almost a quarter of the world’s petrochemicals and significant amounts of industrial metals. In short, much of the oxygen of the global economy runs through a single throat. Yet, Iran believes that choking it is an acceptable strategy.

“When Hormuz is squeezed, the pressure is immediately felt around the world. In just three weeks, the price of oil has risen by 50%. This is raising the cost of living for those who can least afford it and slowing economic growth everywhere. From factories, to farms, to families around the world, the human cost is mounting by the day.

“Weaponising the Strait of Hormuz is not an act of aggression against one nation. It is economic terrorism against every nation. And no country should be allowed to hold Hormuz hostage, not now, not ever. And while we appreciate all efforts to stabilise markets and reduce prices, this is not a supply issue. It is a security issue, and it has only one durable answer, keeping the Strait open. We cannot trade our way out of this crisis.”

Dr. Al Jaber stressed the UAE did not ask for conflict and had taken every possible step to prevent it, but its defences, resilience and character had withstood attack when it came.

“At ADNOC, we took hits no civilian enterprise, let alone one focused on delivering energy to the world, should ever have to take. We are deploying extraordinary measures to keep our people safe and to make sure, as much as possible, every customer and every stakeholder gets what they need.”

Dr. Al Jaber said the UAE and ADNOC’s resilience was not a reaction, but the result of years of investment in infrastructure, preparation and long term planning and strategic partnerships.

“We built ADNOC into one of the most reliable energy companies on Earth not because disruption never reaches our borders, but because when it does, we stay the course. That’s why we have diversified how we produce energy. We have expanded the routes that connect supply to markets.

“We have integrated all sources of energy at scale. We have embedded technology and AI across our operations as the force multiplier that will define the next era of energy. And we have built a global network of partners who believe that energy security is a shared responsibility.”

He ended with an invitation to energy leaders to attend ADIPEC in November, where the resilience of the global energy system will be a focus of discussion.

Meanwhile, ADNOC Gas has confirmed in a disclosure to the Abu Dhabi Securities Exchange that operations are continuing safely across its asset base. Following debris falling near certain facilities, inspections confirmed no injuries and no impact to core processing integrity, the company said. Operations were suspended at the Shah gas plant, which provides around 20% of the UAE’s gas supply, following a drone attack, and were also suspended at Habshan gas facility, one of the region’s largest, on 18 March after the interception of missiles targeting the facility and the Bab oilfield, which caused falling debris.

“The company’s continued focus is on ensuring the safety of staff, contractors, partners, and operations while continuing to serve its customers,” the company states.

In response to ongoing shipping disruption in the Strait of Hormuz, ADNOC Gas has separately made temporary operational adjustments to production of LNG and Export Traded Liquids and is actively collaborating with customers and partners on a transaction-by-transaction basis to fulfill commitments wherever possible.