Adnoc Gas has signed a $4 billion agreement with UAE-based steel manufacturer Emsteel to supply lower-carbon natural gas, in a deal aimed at supporting the country's industrial sector.
The 20-year agreement, effective from January 1, 2027, secures a “stable and reliable” supply of natural gas for Emsteel's operations and future growth, Adnoc Gas said in a statement on Wednesday to the Abu Dhabi Securities Exchange, where it trades.
The agreement “underpins Adnoc Gas's role in boosting the UAE’s industrial growth and economic development”, said chief executive Fatema Al Nuaimi.
Adnoc Gas, estimated to have the seventh-largest natural gas reserves globally, supplies about 60 per cent of the UAE’s gas sales needs and has customers in more than 20 countries.
The company this month reported a nearly 8 per cent annual rise in net income for the third quarter to a record $1.34 billion, supported by domestic demand.
Adnoc Gas, which has access to 95 per cent of the UAE’s natural gas reserves, is also looking to boost exports of products such as liquefied natural gas, liquefied petroleum gas and naphtha.
It is also expanding its customer base internationally.
This month, it signed a long-term sales and purchase agreement with a unit of British energy major Shell for its Ruwais LNG project.
The 15-year deal signed during Adipec in Abu Dhabi is for the delivery of up to one million tonnes per annum of LNG. The LNG will be primarily sourced from Al Ruwais Industrial City project.
In August, Adnoc Gas also signed a 10-year preliminary agreement with Hindustan Petroleum Corporation to supply 500,000 tonnes of LNG to the Indian fuel retailer.
The company also signed a 14-year deal to supply up to 1.2 million tonnes per annum of LNG to state-backed Indian Oil in February. The agreement is valued at between $7 billion and $9 billion, Adnoc Gas said at the time. Indian Oil is set to become the largest buyer of LNG from Adnoc by 2029, it added.
Emsteel, which operates an integrated steel manufacturing plant and is also a key exporter, reported a 9 per cent annual rise in steel sales volumes in the first nine months of this year, supported by strong UAE demand.
“With Adnoc Gas as a key energy partner, Emsteel will continue advancing green steel production, enhancing efficiency across our value chain, and contributing to the sustainable growth of the nation’s industrial ecosystem,” said group chief executive Saeed Al Remeithi.
“This strategic partnership … also reinforces our shared commitment to maximising in-country value and supporting national economic resilience.”
