Adnoc Gas signs agreement to supply natural gas to Northern Emirates
Adnoc Gas is planning to supply natural gas to the Northern Emirates as part of an agreement with Etihad Water and Electricity for new power generation, it said on Wednesday. The move is aimed at exploring future natural gas supply arrangements for new power generation capacity across the Northern Emirates. The collaboration would open a new domestic market for Adnoc Gas’s growing gas volumes…
Adnoc Gas and Etihad Water and Electricity have signed a deal to provide natural gas to the Northern Emirates. This agreement is part of a strategy to explore future supply arrangements for new power generation in the region. The collaboration aims to open a domestic market for Adnoc Gas as its gas volumes increase, while ensuring a reliable fuel source for additional power generation in the UAE.
The agreement supports the nation's growing electricity demand and expands the domestic market as new gas supply becomes available. Adnoc Gas CEO Fatema Al Nuaimi emphasized the company's investment to meet the UAE's increasing energy needs. By expanding its capacity and infrastructure, Adnoc Gas can connect new gas supply with new customers, support future power generation, and create sustainable long-term value for its shareholders.
The company, listed on the Abu Dhabi Securities Exchange, plans to deliver one of the world's largest integrated gas growth programs. This includes the Rich Gas Development project, which will expand processing capacity and increase natural gas availability for domestic customers, and the Estidama project, which will optimize and modernize Adnoc Gas's pipeline network, extending it from 3,200km to over 3,500km.
Together, these investments strengthen the infrastructure needed to transport additional gas from Adnoc Gas's processing facilities to existing and future customers. Adnoc Gas currently caters to 60% of the UAE's sales gas needs and supplies to customers in more than 20 countries. With global gas demand rising as economies aim to reduce emissions to combat climate change, burning natural gas produces lower emissions compared to crude and coal.
The demand for gas is expected to grow globally, with global demand projected to reach nearly 700 million tonnes a year by 2050, an increase of about 65% from 2025 levels. This growth is driven by factors such as the development of new data centers for AI and the launch of Shell's LNG Outlook 2026, which predicts global demand will reach nearly 700 million tonnes a year by 2050.
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