By: OrePulse

ADNOC Gas and Sharjah National Oil Corporation (SNOC) have signed a strategic collaboration agreement to explore gas storage, processing, long-term supply and infrastructure links across the United Arab Emirates, the companies said, as the UAE works to deepen domestic gas-network integration.

The agreement, signed this week, sets out a framework for the two companies to evaluate cooperation on gas storage and processing, long-term gas supply arrangements and shared infrastructure. It also covers potential cooperation on liquefied petroleum gas (LPG) and downstream products trading. The companies did not disclose supply volumes, pricing or a timeline for implementation.

ADNOC Gas Chief Executive Fatema Al Nuaimi said the agreement would add flexibility to how gas is moved, processed and stored within the UAE's domestic network. SNOC Chief Executive Khamis Al Mazrouei said the deal would give Sharjah greater supply security and open new downstream and LPG investment opportunities for the emirate.

SNOC serves as Sharjah's principal gas supplier and holds the emirate's oil and gas assets under its management. The company took on a contract in 2021 to meet nearly all of Sharjah's gas demand, combining its own output with volumes imported from ADNOC under a separate 10-year supply arrangement that took effect that July. SNOC has since started gas production at its Hadiba field and plans to raise output there in 2027, reducing its reliance on imported volumes over time.

ADNOC Gas, for its part, says it supplies about 60% of the UAE's sales gas needs. The company has been expanding processing capacity through its Rich Gas Development project and modernizing its pipeline network under a program it calls Estidama. In August, ADNOC Gas awarded $8.2 billion in engineering, procurement and construction contracts for the next phases of Rich Gas Development, bringing total investment in the project to $13.2 billion.

The companies said a wider domestic customer base would support long-term gas demand alongside international markets, and ADNOC Gas noted that it already supplies end customers in more than 20 countries through its broader commercial operations.

The collaboration agreement does not commit either company to specific investments or binding supply volumes, and further technical and commercial studies would be required before any formal supply contract or joint infrastructure project could be finalized. Still, the tie-up points to closer coordination between Abu Dhabi's dominant gas processor and Sharjah's state energy company at a time when both emirates are looking to secure gas supply for growing domestic demand.

Neither company specified a timeline for completing the planned feasibility assessments or announced any financial commitments tied to the agreement.

The agreement reflects a broader pattern of UAE state energy companies deepening cross-emirate coordination on gas infrastructure, following a series of similar cooperation agreements announced around ADIPEC 2026 covering natural gas, CNG and LNG distribution.