Abu Dhabi signs 15-year gas supply deal with Dubai

The Taweelah – Jebel Ali pipeline began transferring gas between the two emirates in 2001.

Abu Dhabi National Oil Company (ADNOC) has signed a 15-year gas sales deal with Dubai Supply Authority (DUSUP).

The agreement will see ADNOC supply gas to meet dubai’s energy needs through the Taweelah – Jebel Ali pipeline, which began transferring gas between the two emirates in 2001.

DUSUP director general HH Sheikh Ahmed bin Saeed Al Maktoum said the agreement continues a previous deal signed 20 years ago that was drawn up under UAE founder the late Sheikh Zayed bin Sultan Al Nahyan and Vice President, Prime Minister and Ruler of Dubai HH Sheikh Mohammed bin Rashid Al Maktoum. This resulted in ADNOC constructing the pipeline.

“In doing so, we believe that we are not only extending energy cooperation between Abu Dhabi and Dubai in time, but also building on the foundations, originally laid in 1998 and reinforced over the years, to expand the breadth and depth of our energy relations now and in the future,” he added.

ADNOC is planning to access undeveloped tight reservoirs, tap into its gas caps and expand sour gas production under its 2030 plan to meet the UAE’s growing energy demand.

Read: Abu Dhabi’s Supreme Petroleum Council approves ADNOC strategy

The UAE is also supplied with gas from the Dolphin pipeline linked to Qatar. Supply is understood to have not been disrupted despite a boycott against Qatar led by the emirates, Saudi Arabia, Bahrain and Egypt.

Read: Sharjah oil corp doesn’t expect any interruption to Qatar gas supply to UAE