DUBAI—The United Arab Emirates’ national energy company plans to sell a stake of about 4% of its natural-gas business in an initial public offering that it hopes will raise $2 billion, as Middle East petrostates increase plans to supply Europe.
The Abu Dhabi National Oil Co., or Adnoc , will sell more than 3 billion shares in Adnoc Gas, one of the world’s largest gas-processing entities, on the Abu Dhabi Securities Exchange on Feb 23. Shares are expected to begin trading on March 13.
Adnoc Gas was formed earlier this year after Adnoc combined its liquefied-natural gas and gas-processing arms as part of a push to boost output and trading of liquefied natural gas. Abu Dhabi recently delivered its first shipment of LNG to Germany, as Europe increasingly turns to the Middle East after shunning its main supplier of gas, Russia, over the invasion of Ukraine.
Over the long term, Abu Dhabi sees natural gas as an important part of the future energy mix with renewables and nuclear.