ADNOC Gas Inks $10B Gas Deal with UAE's EWEC

ADNOC Gas plc has partnered with utilities firm Emirates Water and Electricity Company (EWEC) for the energy transformation of the United Arab Emirates (UAE).

The agreement is underpinned by a $10 billion, 10-year flexible natural gas sales and purchase agreement between ADNOC Gas Facilities LLC and EWEC, according to a joint news release.

The flexible natural gas supply will be delivered to plants across Abu Dhabi and the UAE, in line with EWEC’s target of decarbonizing water and electricity supply in the UAE, supporting the country’s Net Zero by 2050 Strategic Initiative, according to the release.

ADNOC Gas CEO Fatema Al Nuaimi 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”.

EWEC CEO Othman Al Ali said, “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. As we accelerate the integration of renewable and clean energy and advanced technologies, natural gas plays a critical role in bridging the gap between traditional and sustainable energy sources. 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 the release, gas-fired plants “complement and enable the large-scale integration of solar power, offering crucial flexibility during peak demand periods” as they can adapt their output to real-time demand and supply changes.

Earlier in the month, EWEC issued a request for proposal (RFP) to qualified companies for the development of the Zarraf Solar PV Independent Power Producer (IPP) project, located in the Al Zarraf area of the Al Dhafra Region.

The Zarraf Solar PV project will have 1,500-megawatt (MW) power generation capacity, enough to power approximately 160,000 homes and reduce CO2 emissions by up to 2.4 million metric tons annually.

Zarraf Solar PV will be EWEC’s and Abu Dhabi’s fifth world-leading, utility-scale solar PV project, significantly contributing to EWEC’s strategic plan to increase Abu Dhabi’s solar power capacity to at least 10 gigawatts (GW) by 2030.

In December 2024, EWEC announced obtaining approval to allocate four new sites covering an area of approximately 29 square miles (75 square kilometers) of land for solar photovoltaic (PV) and wind energy developments.

Spanning four sites within Abu Dhabi, the land will feature three new solar PV plants located in Al Faya, Al Khazna, and Al Zarraf, and one new wind farm in Sila, according to an earlier news release.

The projects are set to deliver 4.5 gigawatts (GW) of additional solar PV capacity and up to 140 megawatts (MW) of new wind capacity to Abu Dhabi. The solar PV projects will support EWEC’s delivery of 10 gigawatts (GW) of installed solar PV capacity by 2030 and 18 GW by 2035.

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