Oil and Gas Top Stories

ADNOC signs sales agreement with UAE firms

The long-term agreement has been signed with Emirates Steel and Arkan

The Abu Dhabi National Oil Company (ADNOC) has recently signed long-term gas sales agreements with Emirates Steel (ES) and Arkan of the UAE, according to the media. The deal will boost ADNOC to deliver sustainable gas supply and enable gas self-sufficiency for the Emirates.

The UAE-based Emirates Steel is the largest integrated producer globally, while Abu Dhabi’s Arkan is a construction and buildings materials company. The agreement states that ADNOC will be supplying natural gas to ES and Arkan for the next 10 years, supporting their growing energy demand. Natural gas is a significant feedstock for the industrial sector and serves as a primary energy source for most of the industrial processes. ADNOC can produce 11 billion standard cubic feet of natural gas per day and over one billion standard cubic feet of sour gas. ADNOC supplies about two-thirds of the power needs of the industrial sector of the UAE.

Khaled Salmeen, ADNOC executive director, Downstream Industry, Marketing and Trading Directorate, addressed the media and said that this agreement strengthens the industrial firms’ relationship. They will continue to provide stable and reliable energy supplies to power the industrial sector of Abu Dhabi.

The products from ES are shipped to more than 40 countries across the globe for construction, manufacturing and energy sectors. Arkan is currently involved in some of the big construction projects in the country and has one of the largest cement plants in the UAE. Also, it is the only fully gas-powered plant in the UAE with the lowest production cost.

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