ADNOC and EGA Forge $500 Million Pact to Strengthen UAE’s Aluminium Supply Chain

Abu Dhabi National Oil Company and Emirates Global Aluminium have entered into a $500 million agreement to supply up to 1.5 million tonnes of calcined petroleum coke over five years. This deal aims to localise a significant portion of EGA's raw material needs for aluminium production, reducing reliance on imports and enhancing the nation's industrial self-sufficiency.

Under the terms of the agreement, ADNOC Refining will supply CPC from its Carbon Black and Delayed Coker facility located in the Ruwais Industrial Complex. This facility, commissioned in 2018, is capable of producing 430,000 tonnes of anode-grade CPC annually, a critical component in aluminium smelting. The CBDC facility also produces 40,600 tonnes of carbon black per year, further contributing to the UAE's industrial capabilities.

EGA, the largest industrial company in the UAE outside the oil and gas sector, utilises CPC to manufacture carbon anodes essential for the electrolysis process in aluminium smelting. By sourcing up to 40% of its CPC requirements domestically, EGA aims to reduce logistics costs and mitigate risks associated with global supply chain disruptions.

This partnership aligns with ADNOC's downstream strategy, which includes a $45 billion investment to expand refining and petrochemical operations in Ruwais. The strategy focuses on extracting maximum value from each barrel of crude oil by converting heavy residues into higher-value products like CPC and carbon black. The Ruwais Refinery, one of the world's largest single-site oil refineries, plays a central role in this initiative.

The agreement also supports the UAE's broader economic diversification goals, particularly the Operation 300bn strategy, which seeks to boost the industrial sector's contribution to the national economy. By strengthening local supply chains and fostering collaboration between key industries, the deal exemplifies efforts to build a more resilient and self-reliant industrial base.

In addition to this supply agreement, EGA has been exploring opportunities to reduce the carbon intensity of its CPC supply. In May 2023, EGA signed a memorandum of understanding with bp to jointly explore projects aimed at lowering greenhouse gas emissions associated with CPC production and shipping. This initiative may lead to the development of a CPC blending facility in the UAE, contributing to the nation's sustainability objectives.