Abu Dhabi signs MoU to explore LNG supply for industries, unlocking up to Dh1 billion in potential investment

Abu Dhabi: The Abu Dhabi Department of Energy (DoE) has signed a Memorandum of Understanding (MoU) with H2G Green and its subsidiary Gas Hub United Utility, Muzn Energy, a subsidiary of Sirgas Group, and Cloud Energy Gas (Cloud Energy), during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2026).

The agreement forms part of ongoing efforts to strengthen energy supply security and enhance the efficiency and reliability of Abu Dhabi’s energy system. It will assess opportunities to develop liquefied natural gas (LNG) solutions to serve the emirate’s industrial and commercial sectors, including local LNG production, transportation and distribution to meet the needs of businesses and industrial facilities across Abu Dhabi.

The partnership will focus on exploring innovative solutions to supply natural gas to industrial and commercial facilities, helping diversify supply options, meet the requirements of vital economic sectors and support Abu Dhabi’s industrial and economic growth.

The MoU reflects broader efforts to enhance energy supply security and support the emirate’s expanding industrial and commercial sectors by exploring innovative solutions for facilities located beyond the coverage of existing natural gas distribution networks.

LNG represents one of the solutions capable of providing flexible and reliable supplies to these facilities, supporting business continuity and expansion while creating opportunities to transition from higher-emission fuels to lower-emission alternatives. This is in line with Abu Dhabi’s objectives of improving energy efficiency and advancing its sustainability targets.

Building an integrated, secure and reliable energy system

The partnership underscores Abu Dhabi’s commitment to developing an integrated, secure and reliable energy system capable of keeping pace with economic and industrial growth. This will be achieved through stronger private-sector partnerships, a supportive regulatory environment for investment and innovation, and the exploration of practical solutions to diversify supply options and improve efficiency in meeting the future needs of the emirate’s vital sectors.

A potential investments of up to AED1 billion.

The collaboration could unlock potential investments of up to AED1 billion, supporting the development of flexible natural gas supply solutions for Abu Dhabi’s industrial and commercial sectors.

Under the MoU, all parties will work together to assess opportunities to leverage LNG solutions to supply energy to industrial and commercial facilities, as well as locations not connected to existing gas networks. The collaboration will also explore supporting the requirements of marine and land transportation activities and harnessing the cold energy generated during LNG processes, helping improve resource utilisation and strengthen the resilience of the emirate’s energy supplies.

Private-sector partnerships to strengthen energy security. 

Abdulaziz Mohammed Al Obaidli, Director-General of Regulatory Affairs at the Abu Dhabi Department of Energy, said: 

“We continue to work towards developing a secure, reliable, resilient, sustainable and investment-attractive energy system capable of supporting Abu Dhabi’s economic and industrial growth and meeting the needs of its vital sectors through diversifying supply solutions and enhancing their efficiency.

“This collaboration reflects our commitment to strengthening partnerships with the private sector and leveraging advanced expertise and technologies to explore practical solutions that reinforce energy security, enhance infrastructure readiness and supply resilience, and respond to future development requirements, while supporting the emirate’s sustainability objectives.”

Developing potential projects.

H2G Green will lead the assessment of commercial opportunities for developing potential projects, while Gas Hub will contribute its technical and operational expertise in LNG technologies and related engineering solutions.

Muzn Energy will contribute its local expertise in developing, implementing and operating gas supply solutions for the industrial and commercial sectors. Meanwhile, Cloud Energy will support the assessment of appropriate solutions for supplying customers, transporting and distributing gas to meet the requirements of targeted facilities.

The Abu Dhabi Department of Energy will facilitate coordination with relevant government entities and institutions and help identify suitable sectors and locations for assessing opportunities to implement pilot projects. This will support the evaluation of the proposed solutions' commercial viability and potential for implementation across the emirate.

Innovative solutions to reduce carbon emissions

Laith Al Madi, Chief Executive Officer of Cloud Energy, said:

“Cloud Energy is the region’s first operator to deliver compressed natural gas (CNG) supply solutions through virtual pipelines. Developing ‘LNG virtual pipeline solutions’ represents a natural extension of this journey, building on more than 12 years of experience in providing reliable natural gas supply solutions to manufacturing customers located beyond the reach of conventional gas pipeline networks.

“Expanding the application of this proven model will enable us to serve more industrial facilities across Abu Dhabi, strengthen the emirate’s energy security and advance our commitment to reducing carbon emissions through innovative solutions that can be deployed at scale.

“We are proud to build on our existing expertise and achievements as we lead the next phase of developing LNG solutions for the industrial and commercial sectors in Abu Dhabi, in collaboration with the Department of Energy and our partners, supporting the emirate’s long-term energy ambitions.”

Addressing evolving energy requirements

Mohamed Damak, Chief Executive Officer of Muzn Energy, said:

“As Abu Dhabi’s industrial base continues to expand, the need for energy supply solutions that are flexible, reliable and capable of adapting to changing requirements is becoming increasingly important.

“Signing this MoU marks a significant milestone in addressing this need and represents a tangible step towards launching the Muzn Energy initiative, which we have been developing for some time. We are pleased to take this important step in collaboration with the Abu Dhabi Department of Energy, Cloud Energy and Gas Hub United.

“By combining Muzn Energy’s capabilities in converting customers to gas, as well as transporting and distributing it, with Sirgas Group’s extensive experience in the UAE’s gas sector since 1988, we aim to explore opportunities to leverage LNG solutions as a reliable, lower-emission alternative for industrial facilities not connected to existing gas networks.” 

He added: “LNG offers significant opportunities for the UAE, enabling industrial facilities to reduce their carbon dioxide emissions by transitioning from higher-emission fuels to cleaner and more efficient energy solutions, thereby enhancing their competitiveness in regional and global markets.

“Given that natural gas is lighter than air and disperses rapidly, LNG can also offer a safer alternative to existing synthetic natural gas systems in the UAE.

“Ultimately, this collaboration represents another step towards supporting the UAE’s strategic initiative to achieve climate neutrality by 2050, while strengthening the resilience and sustainability of the country’s energy supply infrastructure for the industrial sector.”

Supporting Abu Dhabi’s expanding industrial and commercial sectors

Benting Ng, Chief Executive Officer of Gas Hub United Utility Private Limited in Singapore, said:

“We are delighted to collaborate with the Abu Dhabi Department of Energy and our partners to explore innovative LNG solutions that support the continued growth of the emirate’s industrial and commercial sectors.

“This collaboration represents an important opportunity to leverage our technical and operational expertise in LNG technologies, distribution to end-user locations and related engineering solutions, with the aim of assessing practical and commercially viable options for providing reliable natural gas supplies to facilities not connected to existing gas networks.

“Through this partnership, we look forward to contributing to greater supply reliability and flexibility while supporting Abu Dhabi’s long-term ambitions to build a secure, efficient and sustainable energy system.”

The collaboration will also cover training, knowledge transfer and the exchange of expertise, including exploring opportunities to develop local capabilities in engineering, equipment assembly, operations and maintenance.