Abu Dhabi: In a strategic move to enhance local supply chains and support industrial growth, ADNOC and Emirates Global Aluminium (EGA) have entered into a significant five-year supply agreement. This partnership will see ADNOC providing up to 1.5 million tonnes of calcined petroleum coke (petcoke) to EGA, a key raw material essential for aluminum production.
According to Emirates News Agency, the agreement, valued at $500 million (AED1.84 billion), was signed during the 'Make it in the Emirates' event in Abu Dhabi. This deal highlights ADNOC's commitment to strengthening the UAE's industrial sector by reducing reliance on imports and fostering local capabilities. ADNOC Refining will supply at least 30 percent of EGA's calcined petcoke needs from the Ruwais Refinery over the next five years, reinforcing the UAE's position as a global aluminum supplier.
The agreement supports ADNOC's In-Country Value (ICV) Programme, which aims to promote economic diversification by supplying critical manufacturing materials to advanced industries. The signing ceremony was attended by Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, alongside Abdulla Kalban, Managing Director of EGA. Khaled Salmeen, ADNOC Downstream CEO, and Abdulnasser bin Kalban, CEO of EGA, formalized the agreement.
Salmeen emphasized ADNOC's dedication to the 'Make it in the Emirates' initiative and the UAE's industrial expansion. By sourcing critical raw materials domestically, the partnership seeks to strengthen supply chains and foster growth in vital industrial sectors. Salmeen also highlighted the importance of the ICV Programme in creating opportunities for local manufacturing and industrial advancement.
EGA, recognized as the world's largest 'premium aluminum' producer, continues to play a pivotal role in the UAE's industrial diversification. The company's products are the largest made-in-the-UAE export after energy. The agreement with ADNOC is expected to drive economic growth and further develop the aluminum sector within the UAE.
Bin Kalban, CEO of EGA, stated that the company has long been a pioneer in industrialization and economic diversification. The agreement with ADNOC enables EGA to secure a significant portion of a key raw material locally, enhancing its economic impact in the UAE.
The supply of 1.5 million tonnes of calcined petcoke is anticipated to enable EGA to produce approximately 3.75 million mt of aluminum over the five-year agreement term, matching Germany's annual consumption. In 2024, EGA's economic contributions to the local economy reached $6.4 billion (AED23.49 billion), accounting for 1.3 percent of the UAE's GDP and supporting over 52,000 jobs.