ADNOC signs 15-yr gas supply deal with Dubai

The Abu Dhabi National Oil Company (ADNOC) said it signed a 15-years gas sales agreement with the Dubai Supply Authority (DUSUP) for the supply of natural gas, to help meet Dubai’s energy needs.   

The agreement was signed, at ADNOC’s headquarters, by H.H. Sheikh Ahmed bin Saeed Al Maktoum, director general of DUSUP and H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.

DUSUP signed a 20-year gas supply agreement that many years ago to secure supply for Dubai’s energy needs. ADNOC then constructed the Taweelah – Jebel Ali pipeline and the beginning of gas deliveries from ADNOC to Dubai in 2001.

“We believe that we are not only extending energy cooperation between Abu Dhabi and Dubai in time, but also building on the foundations, originally laid in 1998 and reinforced over the years, to expand the breadth and depth of our energy relations now and in the future,” H.H Sheikh Ahmed bin Saeed Al Maktoum.

Dr Al Jaber said: “This agreement underscores ADNOC’s commitment to meeting the growing energy needs of the UAE. We will harness our gas resources for the benefit of the nation, working in close collaboration with our customers and partners, by making smart investments in the development of additional gas reserves. This will enable us to deliver against our strategic objective of providing a sustainable and economic supply of gas to the UAE.”

As part of its 2030 smart growth strategy, ADNOC plans to access undeveloped tight reservoirs, tap into its gas caps and expand sour gas production to ensure a sustainable delivery and economic gas supply to meet the UAE’s growing demand for energy.

Additionally, it has begun an exploration drilling programme to explore for, and appraise, the potential of individual gas deposits in tight reservoirs.

Last month, ADNOC announced the awarding of two Front End Engineering Design (FEED) contracts for ADNOC’s planned offshore ultra-sour gas mega project, which consists of the Hail, Ghasha and Dalma fields, from which ADNOC expects to produce more than one billion cubic feet of gas per day, enough gas to provide electricity to two million UAE homes.