The Abu Dhabi National Oil Company (Adnoc) has announced it has signed a new 15-years gas sales agreement with the Dubai Supply Authority (DUSUP) to supply natural Gas, which is aimed to help meet Dubai’s rising energy needs.

The agreement was signed on 6 February at Adnoc’s headquarters in Abu Dhabi. It is not known what quantities of gas supplies have been agreed upon by the parties.

Adnoc had signed the original gas supply agreement with DUSUP in 1998. Under the agreement, the Taweelah-Jebel Ali pipeline was built, with gas deliveries from Adnoc to Dubai starting in 2001.

“This agreement (with Dusup) underscores Adnoc’s commitment to meeting the growing energy needs of the UAE. We will harness our gas resources for the benefit of the nation, working in close collaboration with our customers and partners, by making smart investments in the development of additional gas reserves. This will enable us to deliver against our strategic objective of providing a sustainable and economic supply of gas to the UAE,” Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO was quoted as saying in a press release.

As part of its 2030 smart growth strategy, ADNOC plans to access undeveloped tight reservoirs, tap into its gas caps and expand sour gas production. In addition, it has commenced an exploration drilling programme to explore for, and appraise, the potential of individual gas deposits in tight reservoirs.

Last month, Adnoc announced the awarding of two front-end engineering design (Feed) contracts for its planned offshore ultra-sour gas mega project, which consists of the Hail, Ghasha and Dalma gas fields, from which Adnoc expects to produce more than 1 billion cubic feet of gas a day.