- On Friday, in the presence of President Sheikh Mohammed bin Rashid and Sheikh Mohamed bin Zayed, Vice President and Crown Prince of Abu Dhabi, Abu Dhabi National Oil Company (ADNOC) signed a deal with Dubai Supply Authority (Dusup) for the sale of natural gas.
- As part of a deal, Adnoc will supply Dusup with gas to generate electricity at the Hassayn Power Complex in Dubai, replacing clean coal with natural gas, significantly reducing emissions from power-generation operations. The move comes off the back of the UAE's pledge for net zero emissions by 2050 and Adnoc's focus on leveraging Abu Dhabi's natural gas resource to enable a responsible energy transition.
- In addition, the deal will support Adnoc's focus on leveraging its natural gas resource for economic growth by increasing the use of domestically produced natural gas, which is cheaper than imported coal or natural gas.
Why it matters
As other countries turn to coal power in light of current geopolitical tensions, the UAE is determined to uphold its commitment to decarbonising its energy sector. Even more, the deal further strenghtens energy co-operation between the two states and its vision to provide power generation from clean energy sources by 2050.
