ADNOC, EGA seal $500m petcoke supply agreement
The agreement, valued at $500 million, was signed at the ongoing 'Make it in the Emirates' event in Abu Dhabi, underscoring ADNOC's commitment to supporting the UAE's industrial growth and enhancing local supply chains.
Through the agreement, ADNOC Refining will supply at least 30% of EGA's calcined petcoke requirements from the Ruwais Refinery over the next five years, strengthening the UAE's role as a global aluminum supplier by reducing its reliance on imports and fostering local industrial capabilities.
ADNOC said the agreement with EGA - the largest industrial company in the UAE outside the energy sector - supports its successful In-Country Value (ICV) Programme by promoting economic diversification in the UAE and supplying critical manufacturing materials to advanced industries.
The deal was inked by Khaled Salmeen, ADNOC Downstream CEO, and Abdulnasser bin Kalban, CEO of EGA in the presence of Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, and Abdulla Kalban, Managing Director of EGA.
On the strategic agreement with EGA, Salmeen said it exemplifies ADNOC's commitment to driving the 'Make it in the Emirates' initiative and the UAE's industrial base.
"By supplying this critical raw material for aluminum production from our Ruwais Refinery, we are strengthening domestic supply chains, reducing reliance on imports and enabling growth in one of the nation's most vital industrial sectors," he stated.
"Through our ICV Programme, we will continue to create more opportunities to enhance local manufacturing and industrial growth," he added.
As the world's largest 'premium aluminum' producer, EGA continues to lead the UAE's industrial diversification, with its products comprising the UAE's largest made-in-the-UAE export after energy.
The agreement between ADNOC and EGA will play a critical role in driving continued economic growth and ensuring the further development of the aluminum sector in the UAE.
Bin Kalban said: "EGA has been a pioneer of industrialisation and economic diversification for decades, and today we are a champion of 'Make it in the Emirates' through our local procurement, metal supply to UAE industry and our record Emiratisation."
"This agreement with ADNOC enables us to secure a significant proportion of a key raw material locally, further increasing our economic impact in the UAE," he noted.
The 1.5 million tonnes of calcined petcoke will enable EGA to produce around 3.75 million mt of aluminum over the five-year term of the agreement – approximately equal to the annual consumption of Germany, he added. -TradeArabia News Service
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