ADNOC Gas and the Emirates Water and Electricity Company (EWEC) finalized a landmark $10 billion partnership, formalized as a 10-year flexible natural gas Sales and Purchase Agreement (SPA). Announced on the sidelines of the World Future Energy Summit during Abu Dhabi Sustainability Week, this strategic deal secures a highly reliable and adaptable supply of natural gas to power stations across the UAE. Designed to fuel over two-thirds of the nation’s heavy industries and manage seasonal peak-demand spikes, the agreement positions natural gas as a vital transitional bridge. It enables EWEC to rapidly scale up and integrate massive solar energy projects, ultimately driving Abu Dhabi’s aggressive mandate to source 60% of its electricity from clean energy by 2035 and supporting the UAE’s broader Net Zero by 2050 strategic initiative.

This multibillion-dollar domestic supply structure provides a vital internal safety net for the UAE as it navigates the highly volatile shipping blockade in the Strait of Hormuz. Following a severe disruption to maritime transits that began in late February 2026 due to regional military hostilities and subsequent enforcement blockades, the global energy market has faced massive supply shocks. Because overland LNG pipelines do not exist, traditional Gulf exports have been heavily restricted, forcing ADNOC to take high-risk operational gambles, such as forcing older steamship carriers to “go dark” by turning off their automatic tracking systems to slip past drone threats and minefields to reach Asian buyers.

The $10 billion domestic deal essentially decouples the UAE’s primary power and industrial infrastructure from this treacherous maritime chokepoint. Because ADNOC Gas distributes roughly 60% of its total output directly to local end-users via an extensive, interconnected onshore pipeline network, two-thirds of the country’s industrial economy, desalination plants, and electricity grids remain entirely self-sufficient. While the ongoing blockade is expected to dent ADNOC’s international export profits by hundreds of millions of dollars this quarter, the domestic distribution guaranteed by the EWEC partnership ensures that the UAE’s internal economy, power security, and digital tech infrastructure are entirely insulated from the physical chokehold of the Hormuz crisis. Furthermore, the Strait of Hormuz crisis has served as an eye-opener to many countries that depend on it for oil and gas supply forcing the countries to seek other options for oil and gas security. This can be witnessed with the Louisiana LNG project in the US that has recently received backing from Abu Dhabi following shortages of supply from the Middle East.

January 21, 2025

ADNOC Gas has signed a $10 billion flexible natural gas deal that features a sales and purchase agreement with EWEC. The 10-year deal between Adnoc and the Emirates Water and Electricity Company (EWEC) has been commended as a remarkable endeavor. The aim of the deal is to support the UAE’s energy transformation, marking a significant strategic partnership. The partnership was celebrated during the Abu Dhabi Sustainability Week 2025. Moreover, the event was attended by Fatema Al Nuami, ADNOC Gas’s Chief Executive Officer.

Also in attendance was Othman Al Ali, Chief Executive Officer of EWEC along with representatives from both firms. Al Nuami noted that the partnership between ADNOC and EWEC was one that would be valuable. “We greatly value our partnership with EWEC, which is underpinned by a 10-year strategic agreement,” she noted. Furthermore, she added that the deal would support the nation’s net-zero ambitions. The collaboration also highlights UAE’s commitment across the industrial value chain to leverage Abu Dhabi’s vast energy gas reserves. This will ensure the nation’s self-sufficiency while continuing to fuel over two-thirds of the nation’s industries.

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The Significance of the ADNOC’s Natural Gas Deal

The significance of ADNOC’s gas deal with EWEC is expected to bring monumental changes in driving sustainable economic growth. Gas-fired power plants provide important transitional capacity. This enables for continued integration of large-scale renewable and clean energy. The flexible natural gas supply will be delivered to plants across Abu Dhabi and the UAE. Moreover, it will solidify the companies’ shared commitment to ensure sustainable economic growth. The commitment of ADNOC Gas and EWEC is noticeable, as ADNOC recently awarded three contracts for the Ruwais LNG plant.

Valued at around $2.1 billion, the contracts entail an LNG preconditioning plant, compression facilities, and transmission pipelines. Once completed, the Ruwais LNG will more than double ADNOC’s current LNG capacity. It also highlights the nation’s commitment to sustainability as it will run on clean power. Through this, it will be the first LNG export facility in the Arab world to do so. The natural gas deal with EWEC solidifies these ambitions, ensuring ADNOC Gas is able to meet its targets.

Project Factsheet

Agreement Name: Landmark Flexible Natural Gas Sales and Purchase Agreement (GSPA)

Supplier (Seller): ADNOC Gas plc (via ADNOC Gas Facilities LLC)

Procurer (Buyer): Emirates Water and Electricity Company (EWEC)

Total Contract Value: $10 Billion (AED 36.7 Billion)

Contract Duration: 10 Years

Sign-Off Date: Announced January 21, 2025 (Abu Dhabi Sustainability Week)

Geographic Scope: Power and desalination plants across Abu Dhabi and the wider UAE

Operational and Strategic Objectives

• Grid Capacity Management: Natural gas currently fuels approximately 67% of Abu Dhabi’s installed electricity capacity. This deal locks in a stable baseline supply.
• Grid Flexibility & Peak Shaving: Gas-fired power stations serve as the vital “transitional capacity” because they can start, stop, and ramp power output rapidly. This flexibility bridges the gap during peak summer demand periods and stabilizes the grid against the intermittent nature of solar power.
• Industrial Infrastructure Anchoring: The deal secures fuel requirements to sustain over two-thirds of the nation’s domestic industries, ensuring heavy manufacturing and manufacturing zones maintain complete self-sufficiency.

Associated Infrastructure Development

• Onshore Distribution Network: Distribution utilizes ADNOC’s highly resilient 3,260 km interconnected domestic pipeline network, bypassing maritime shipping routes.
• New Utility Tenders: The deal directly aligns with current utility infrastructure expansions in Abu Dhabi, including:

Taweelah C: A new 1,500 MW Combined-Cycle Gas Turbine (CCGT) power plant.

Madinat Zayed: A new 1,500 MW Open-Cycle Gas Turbine (OCGT) plant built specifically for fast-response peak balancing.

• Ruwais LNG Link: While this agreement targets domestic self-sufficiency, it runs parallel to ADNOC’s development of the 9.6 MTPA Ruwais LNG export terminal (targeted for 2028 operational start), which will run entirely on clean grid power provided back by EWEC.

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