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ADNOC Enables UAE Industry through Long-Term and Reliable Natural Gas Supply

Natural gas a critical growth enabler for UAE industrial sector to “Make it in the Emirates” 

ADNOC supplies two-thirds of UAE’s industrial power needs

New 10-year agreements with Emirates Steel and Arkan support the growing energy demand of Abu Dhabi’s industrial sector

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Abu Dhabi, UAE – May 25, 2021: 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.

 

Release Details

May 26, 2021
Abu Dhabi

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About ADNOC

ADNOC is a leading diversified energy and petrochemicals group. Headquartered in Abu Dhabi, ADNOC is a primary catalyst for the UAE’s growth and diversification. To find out more, visit www.adnoc.ae

For media inquiries please contact:

Philip Robinson
Manager, ADNOC External Relations
+971 (0) 50 504 4934
probinson@adnoc.ae

About Emirates Steel

Emirates Steel is a leading integrated steel manufacturer in the Middle East region, based in the UAE capital, Abu Dhabi. Through Senaat, Emirates Steel is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy. Established in 1998, Emirates Steel boasts leverages cutting-edge rolling mill technology, and supplies the domestic and international markets with high quality finished products including wire rods, rebars, heavy sections and sheet piles.

Emirates Steel is the first steelmaker in the world to capture its CO2 emissions, with the possible exception of some North American manufacturers. The company plays an enabling role in building the UAE’s future and contributes to achieving the Abu Dhabi Economic Vision 2030 and UAE Centennial 2071 through its delivery of market-leading products to local industries and provision of career opportunities for talented UAE nationals. 

For media inquiries, please contact:
Mohammad Daggamseh 
Head of Media and Public Relations 
Emirates Steel 
+971 564144143
mohammad.daggamseh@emiratessteel.com

About Arkan

Arkan Building Materials Co. PJSC (ADX: ARKAN) is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy. Arkan is a public joint stock company specializing in manufacturing of building and construction products in the UAE. Arkan’s vision is to build a large integrated building products business that serves the local and regional construction industries. Arkan’s portfolio companies include the Al Ain Cement Factory, Emirates Blocks Factories, ANABEEB and Arkan Dry Mortar. For more information, please visit our website: www.arkan.ae.  
 
For enquiries, please contact:
Brunswick Group
Radwa El Taweel
Phone: +971 (56) 416 9258
Email: arkan@brunswickgroup.com