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ADNOC Gas Partners with SNOC to Bolster UAE Energy Infrastructure Resilience

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Financial Arabia NewsDesk is the desk responsible for Financial Arabia's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news...

ADNOC Gas announced on Thursday the signing of a strategic collaboration agreement with Sharjah National Oil Corporation that sets a framework to evaluate joint work on gas storage, processing, long-term supply arrangements and supporting infrastructure. The pact also opens the door to new opportunities in liquefied petroleum gas and downstream product trading, according to a statement issued by ADNOC Gas. The companies aim to combine their respective strengths to meet rising energy demand, particularly in the Northern Emirates, while improving overall system resilience. This collaboration arrives as ADNOC Gas advances one of the world’s largest integrated gas growth programmes.

Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said in the statement, “This agreement brings together complementary infrastructure and capabilities to unlock greater value across the UAE’s gas network.” She added that working with SNOC would create greater flexibility in how gas is moved, processed and stored. Al Nuaimi noted that the partnership would reinforce security of supply while supporting the UAE’s continued industrial growth. The announcement was distributed through official channels including WAM.

H.E. Khamis Al Mazrouei, Chief Executive Officer of SNOC, stated, “We are delighted to partner with ADNOC Gas to build a stronger, more resilient and integrated UAE gas network.” Al Mazrouei highlighted that SNOC’s long-standing infrastructure in Sharjah complements ADNOC Gas’s growth program. He pointed to benefits including greater supply security for Sharjah, new investment in downstream and LPG opportunities, and a stronger role in the UAE’s energy future. The agreement builds on SNOC’s decades of operational experience in the emirate.

ADNOC Gas’s growth initiatives include the Rich Gas Development project, which will expand gas processing capacity and increase natural gas availability for domestic customers, the company has previously detailed. The Estidama project focuses on optimizing and modernizing the pipeline network to support rising demand, with ADNOC Gas having awarded $550 million in related contracts that are expected to circulate 70 percent of value back into the UAE economy through its In-Country Value program. These efforts will extend the sales gas pipeline network from approximately 3,200 kilometers to more than 3,500 kilometers. Ownership of the Estidama project has been transferred to ADNOC while ADNOC Gas continues to manage construction and operations.

The collaboration aligns with broader UAE efforts to enhance energy infrastructure amid growing industrial and power generation needs in the Northern Emirates, according to ADNOC Gas assessments. SNOC’s assets provide additional storage and processing options that can improve efficiency in gas delivery across emirates including Sharjah, Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain. Recent similar partnerships, such as SNOC’s work with Emirates Gas on LPG sector development, underscore a pattern of targeted alliances to expand trading and supply capabilities.

ADNOC Gas operates a substantial portion of the UAE’s gas processing and pipeline assets, positioning it to integrate SNOC’s contributions into the national network, the statement indicated. The agreement does not specify immediate supply volumes but establishes a platform for future long-term arrangements that could stabilize deliveries. Both parties will now proceed with detailed evaluations of potential projects under the new framework.

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Financial Arabia NewsDesk is the desk responsible for Financial Arabia's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.