Abu Dhabi National Oil Company (ADNOC) Gas signed a 20-year natural gas supply agreement with Emstel Group worth AED 14.69 billion ($4 billion) starting in January 2027, bolstering the company’s long-term domestic revenue base at a time when global energy prices are declining.
The signing of the agreement comes as Abu Dhabi National Oil Company (ADNOC), owner of ADNOC Gas, boosted natural gas reserves from 290 trillion standard cubic feet to 297 trillion, strengthening the country’s position as the world’s seventh-largest holder of gas reserves, according to the Emirates News Agency (WAM) earlier this week.
ADNOC supports the industrial growth of the UAE
Fatima Al Nuaimi, CEO of ADNOC Gas, said in a disclosure published on the Abu Dhabi Financial Market website on Wednesday that the agreement confirms the pivotal role the company plays in supporting industrial growth and economic development in the UAE, stressing ADNOC’s commitment to providing reliable and low-emission energy to support national industries.
Emsteel is the largest listed company in the UAE in the field of steel and building materials, and directs its production locally as well as exporting abroad. The statement noted that its continued cooperation with ADNOC Gas in the energy sector will enable it to develop green steel production.
ADNOC Gas’s third-quarter results, released earlier this month, revealed a 5.6% year-on-year decline in revenues to AED 21.8 billion ($5.93 billion), coinciding with a drop in the average price of Brent crude to $69 per barrel during the third quarter, compared to $80 in the same period last year, along with a 10% decline in liquefied natural gas prices, according to the company’s statement.
