ADNOC’s $10B gas supply deal boosting UAE’s energy transition

ADNOC Gas, an affiliate of Abu Dhabi National Oil Company (ADNOC), has entered into a long-term strategic partnership with Emirates Water and Electricity Company (EWEC), the procurer and supplier of water and electricity in Abu Dhabi. The duo has also signed a gas sales and purchase agreement (GSPA) in a bid to support the energy transformation of the United Arab Emirates (UAE).

The partnership, celebrated during Abu Dhabi Sustainability Week 2025, was reinforced by a 10-year flexible GSPA worth $10 billion. Under the deal, natural gas will be delivered to plants across the country to support its transition to a lower-carbon water and electricity system. The duo says the agreement solidifies their shared commitment to drive sustainable economic growth in the UAE.

Fatema Al Nuaimi, Chief Executive Officer (CEO) of ADNOC Gas, said: “We greatly value our long-term partnership with EWEC, which is underpinned by a 10-year strategic agreement, supporting the rise of digitization, the increasing need for resilient connectivity and growing technology adoption across the UAE’s economy, while advancing the nation’s net-zero ambitions. 

“By collaborating across the industrial value chain to leverage Abu Dhabi’s vast gas reserves, we are working to ensure the UAE’s self-sufficiency while continuing to fuel over two thirds of the nation’s industries, driving sustainable economic growth and diversification.”

As explained, EWEC is mandated to implement strategic initiatives that will achieve the 60% clean energy target outlined in the Abu Dhabi Department of Energy’s (DoE) Clean Energy Strategic Target 2035 for Electricity Production in Abu Dhabi. 

ADNOC Gas says it supports EWEC in its strategic plans to transform the UAE’s energy sector into a clean and renewable-focused industry, driving the nation’s economic growth and digital technology-led diversification.

EWEC’s CEO, Othman Al Ali, noted: “This landmark agreement with ADNOC Gas ensures a stable and flexible supply of natural gas that is pivotal to enabling the UAE’s energy transition. This partnership strengthens EWEC’s ability to deliver a secure, efficient, and decarbonised water and electricity system while contributing to the UAE’s Net Zero by 2050 Strategic Initiative. By collaborating with ADNOC Gas, we are reaffirming our shared commitment to powering the UAE’s economic growth, advancing sustainability, and ensuring long-term energy security for generations to come.”

According to ADNOC Gas, gas-fired plants provide important transitional capacity. Being able to start and stop quickly and adapt output to real-time demand and supply changes, these facilities are said to offer flexibility during peak demand periods. Furthermore, they complement the large-scale integration of solar power.

The UAE player is developing a 9.6 million tonnes per annum (mtpa) Ruwais LNG terminal in Al Ruwais Industrial City, Abu Dhabi. Once the project is operational in 2028, ADNOC Gas is set to acquire its parent company’s stake in the project, which is expected to more than double its gas output.

Earlier this month, three infrastructure contracts with a combined value of $2.1 billion were awarded for the project. The contracts encompass works on an LNG pre-conditioning plant (LPP), compression facilities, and transmission pipelines.