Tue 25-05-2021 16:25 PM
ABU DHABI, 25th May, 2021 (WAM) -- The Abu Dhabi National Oil Company (ADNOC) announced today that it has signed long-term gas sales agreements with two of the United Arab Emirates’ (UAE) leading industrial companies: Emirates Steel (ES), the largest integrated steel producer in the UAE, and Arkan, a construction and building materials company in Abu Dhabi.
The agreements underscore the role of natural gas as a key enabler for the UAE’s industrial sector, and engine of the nation’s economic growth and diversification, and support the Ministry of Industry and Advanced Technology’s (MoIAT) "Make it in the Emirates" strategy. It also emphasises ADNOC’s drive to deliver a more sustainable and economic gas supply and enable gas self-sufficiency for the UAE as part of its 2030 strategy.
Under the terms of the agreements, ADNOC will supply natural gas to Emirates Steel and Arkan for the next 10 years to support the growing energy demand and feedstock of Abu Dhabi’s industrial sector. The long-term gas sales agreements were signed by Khaled Salmeen, ADNOC Executive Director, Downstream Industry, Marketing & Trading Directorate, Saeed Ghumran Al Remeithi, CEO of Emirates Steel, and Abdelaziz Asad, Acting CEO of Arkan.
Khaled Salmeen said: "We are very pleased to sign these new gas supply agreements with Emirates Steel and Arkan, two of our longstanding customers. These important agreements strengthen ADNOC’s relationship with both companies as we continue to provide stable and reliable energy supplies to power Abu Dhabi’s industrial sector, enabling industry to thrive and "Make it in the Emirates". ADNOC remains committed to delivering a more sustainable and economic gas supply and enabling gas self-sufficiency for the UAE in line with the wise directives of our Leadership."
Natural gas is an important feedstock for the industrial sector as it serves as a primary energy source for many industrial processes. ADNOC has the capacity to produce 11 billion standard cubic feet (SCF) of natural gas per day and over 1 billion SCF of sour gas per day, and much of this gas is supplied to customers in the UAE. ADNOC currently supplies over two-thirds of the UAE’s industrial sector’s power needs.
Saeed Ghumran Al Remeithi, CEO of Emirates Steel said: "This agreement will ensure security of supply and cost of natural gas to our plants, and demonstrates ADNOC’s continued support of the UAE’s industrial sector. It further strengthens the collaboration between ADNOC and Emirates Steel on sustainability and the reduction of UAE’s CO2 emissions."
Emirates Steel is the only integrated steel producer in the UAE delivering high-quality products, services and solutions. Based in the industrial city of Abu Dhabi (ICAD-1), the company’s products are shipped to more than 40 countries across the world for the construction, manufacturing and energy sectors.
Abdelaziz Asad, Acting CEO of Arkan, said: "We are pleased to sign this ten-year gas agreement with ADNOC with whom we have built a strong, long-standing partnership over many years. This agreement ensures pricing and delivery stability supporting our operational planning and manufacturing capabilities across our portfolio of businesses. Strong cooperation across the industrial sector is key to driving Abu Dhabi’s sustainable growth."
Arkan is a leading building materials supplier in Abu Dhabi with a diversified portfolio of quality products and services ranging from Cement, Blocks, Dry Mortar, PVC pipes, GRP pipes and bags. Arkan’s portfolio companies include the Al Ain Cement Factory, Emirates Blocks Factories, Anabeeb, and Arkan Dry Mortar.The company is involved in some of the biggest construction projects in Abu Dhabi and has one of the largest cement plants in the UAE. It is the only fully gas-powered plant in the UAE with the lowest cost of production.