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UAE: Adnoc, Dusup sign landmark gas sales agreement

It showcases the country's commitment to progressive and pragmatic climate action

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.

Adnoc’s integrated gas master plan links every part of the gas value chain to ensure a sustainable and economic supply of natural gas, in order to meet the growing requirements of the UAE and international markets.

The plan includes the application of new approaches and technologies to enable increased and competitive gas recovery from existing fields, as well as developing untapped resources and leveraging innovation to continually drive emissions’ reduction.

Domestically-produced natural gas is more commercially competitive compared to imported coal or gas, and will support economic growth, while lowering emissions when used as a substitute for coal in power generation.

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Adnoc is a responsible provider of reliable, lower-carbon energy. In addition to the expansion of its gas operations, Adnoc is growing its new energies business to capitalise on opportunities in hydrogen and renewables, while decarbonising its operations, as it embraces the energy transition and continues to help meet global energy demand.

The Hassyan Power Complex was initially built as a dual-fuel plant with the ability to operate full-time — at full load — on both natural gas or clean coal, but has been transformed to run only on natural gas. The present net electricity generation capacity of the Hassyan Power Complex is 1,200 megawatts (MW). A further 600 MW (net) is scheduled to be added in Q4 of 2022 and an additional 600 MW (net) will be added by Q3 of 2023.

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.