UAE: Adnoc, Dusup sign landmark gas sales agreement

President His Highness Sheikh Mohamed bin Zayed Al Nahyan and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, have witnessed the signing of a landmark gas sales agreement between Abu Dhabi National Oil Company (Adnoc) and Dubai Supply Authority (Dusup).

The agreement showcases the UAE’s commitment to progressive and pragmatic climate action, and reinforces Adnoc’s role in enabling a responsible energy transition.

The agreement will see Adnoc supply Dusup with natural gas, which will be used instead of clean coal for electricity generation at Dubai Electricity and Water Authority (DEWA)’s IPP (Independent Power Producer) Hassyan Power Complex, further reducing carbon emissions from the power generation process. This supports the UAE Net Zero by 2050 Strategic Initiative, and its plans to generate electricity from cleaner energy sources.

The agreement was signed at Qasr Al Watan by H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy and Director-General of Dusup, and Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO.

The agreement signing ceremony was attended by H.H. Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Interior; H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Presidential Court; H.H. Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation; H.H. Sheikh Khaled bin Mohamed bin Zayed, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office, as well as a number of ministers and senior officials.

Sheikh Ahmed bin Saeed said:

"This agreement supports the vision and directives of the wise leadership to turn Dubai into a carbon-neutral economy and provide 100 per cent of Dubai’s total power generation capacity from clean energy sources by 2050. This agreement further strengthens energy cooperation between Abu Dhabi and Dubai, building on the foundations originally laid in 1998 and reinforced over the years, to expand the breadth and depth of our energy relations."

"While many countries around the world are returning to coal as a result of geopolitical uncertainty and energy price volatility, the UAE is delivering on its commitment to decarbonise its power sector," he added.

Dr. Al Jaber stated that in line with the directives of the UAE’s wise leadership, Adnoc was advancing its efforts to harness Abu Dhabi’s vast natural gas resources to meet the world’s growing demand for this important transition fuel and enable a responsible energy transition. This landmark agreement would significantly reduce power generation emissions at the Hassyan Power Complex, directly supporting the UAE Net Zero by 2050 Strategic Initiative.

"Working in close collaboration with our customers and partners, Adnoc will continue to expand our natural gas capacity to deliver against our strategic objectives of decarbonizing our energy and power systems, ensuring UAE gas self-sufficiency and driving long-term and sustainable growth for the UAE," he declared.

The complex is an important addition to DEWA’s power generation projects, including the Jebel Ali Power and Desalination Complex, the Al Aweer Power Station Complex, green hydrogen, a hydroelectric power plant in Hatta, and the Mohammed bin Rashid Al Maktoum Solar Park — the largest single-site solar park in the world with a planned capacity of 5,000 MW by 2030.