Abu Dhabi Energy Department Signs LNG Supply Pact That Could Draw Dh1 Billion in Investment

The agreement was signed at ADIPEC 2026 with H2G Green and its affiliate Gas Hub United Utility, Mozon Energy, which is part of the Sergas group, and Cloud Energy Gas, according to a statement carried by the Emirates News Agency. It sets up a framework to assess producing LNG locally and transporting and distributing it to sites in Abu Dhabi that cannot be reached by pipeline.

The aim is to give those sites a gas supply in place of higher-emission fuels. Plants that are not connected to the gas network typically run on diesel or other liquid fuels. Supplying them with LNG by truck, a model sometimes called a virtual pipeline, would let them switch to gas without waiting for new pipelines to be built, a point the companies themselves made.

The partners will also look at LNG for sea and land transport and at using the cold energy released when LNG is turned back into gas. The department said it will coordinate with government bodies and help identify sectors and sites for possible pilot projects to test whether the proposals are viable. The agreement also covers training and building local skills in engineering, equipment assembly, operations and maintenance.

The companies have split the work. H2G Green will study the commercial case for possible projects. Gas Hub will provide technical and operating expertise in LNG technology and engineering. Mozon Energy will develop, build and run gas supply for industrial and commercial customers. Cloud Energy will study how to transport and distribute gas to the target sites.

Abdulaziz Mohammed Al Obaidli, executive director of regulatory affairs at the Department of Energy, said the department is working on an energy system that is secure, reliable, flexible and attractive to investors, by diversifying supply options and making them more efficient.

Laith Al Madi, chief executive of Cloud Energy, said his company was the first operator in the region to supply compressed natural gas through virtual pipelines and has more than 12 years of experience serving manufacturers that are not connected to conventional gas pipelines. Moving into LNG was a natural extension of that work, he said.

Mohamed Damak, chief executive of Mozon Energy, said signing the memorandum of understanding was a practical step in launching the company's initiative. He said Sergas has worked in the UAE gas sector since 1988. Bentinck Ng, chief executive of Singapore-based Gas Hub United Utility, said the partners would look for practical and commercially viable ways to supply sites outside existing gas networks.

The agreement is a framework to study opportunities, not a commitment to build. The Dh1 billion is described as potential investment, and the parties have not named pilot sites or set timelines.