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    Adnoc inks gas supply deals

Summary

It will supply gas to Emirates Steel and building materials company Arkan for 10 years.

by: Shardul Sharma

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Complimentary, NGW News Alert, Natural Gas & LNG News, Middle East, Security of Supply, Corporate, News By Country, United Arab Emirates

Adnoc inks gas supply deals

The UAE's Adnoc has signed 10-year gas sales agreements with steel producer Emirates Steel and Arkan, a construction and building materials company in Abu Dhabi, state-run Emirates News Agency reported on May 25.

Adnoc has the capacity to produce 11bn ft3/day of natural gas and over 1bn ft3/day of sour gas, and much of this gas is supplied to customers in the UAE. The news agency did not report on the volumes of gas that will be supplied to the two companies. 

Meanwhile, Adnoc in a separate statement said Al Yasat Petroleum, Adnoc’s joint venture with China's CNPC has awarded a $744mn contract for the full field development of the Belbazem offshore block to UAE-headquartered National Petroleum Construction Company.

Located 120 km northwest of Abu Dhabi, the Belbazem block consists of three fields: Belbazem, Umm Al Salsal, and Umm Al Dholou. Adnoc and CNPC hold 60% and 40% stakes in Al Yasat respectively.

The scope of the award covers engineering, procurement, construction, and commissioning activities for the offshore facilities required to enable full production capacity of 45,000 barrels/day of light crude and 27mn ft3/day of associated gas from Belbazem, Adnoc said.