Home | Economic

Economy

ADGAS has a strategic objective of creating wealth to its shareholders and maximizing its revenue from Operations. It has a dedicated marketing division which seeks to optimize the selling conditions of ADGAS products with current and potential customers.

As an ADNOC Group company, ADGAS is a key contributor to the wealth of Abu Dhabi and the nation. ADGAS LNG, LPG, Paraffinic Naphtha and Sulphur sales have generated vast revenues, maximizing shareholders’ returns. Additionally, ADGAS is set to play a key role in Abu Dhabi’s vision of 2030, supplying natural gas from offshore to onshore facilities to meet the increasing local demand. Great examples of this shift are the Offshore Associated Gas (OAG) project and the Integrated Gas Development (IGD) project, which will supply an average of 2 Billion standard cubic feet of gas per day (2 BSCFD). 

Customers

Providing our customers with quality products has helped us create longstanding strong relationships, most notably with our main customer, Tokyo Electrical Power Company (TEPCO), which dates back to ADGAS’ beginnings in the early 1970s.

Tokyo Electrical Power Company (TEPCO)

ADGAS Marketing, Sales and Production divisions coordinate production schedules to meet agreed customer contract requirements. Our exceptional commitment to these schedules is evident in the involvement of high-level management in managing the relationship with our main customer. A further testimony to our commitment to this special relationship is the establishment of a permanent office, Tokyo Liaison Office (TLO), with its personnel at TEPCO’s location to ensure accurate and timely communication, which in turn ensures that TEPCO’s requirements are addressed on an immediate basis.

Other Customers

Although TEPCO is our primary customer, ADGAS applies the same diligence and quality to other customers to ensure maximum satisfaction. The marketing team schedules semi‐annual customer visits to better understand evolving customer needs and gauge perceptions that will allow us to enhance customer satisfaction. These routine visits are supplemented by meetings on the sidelines of major regional and global industry conferences and seminars. The overall excellent perception of ADGAS in the eyes of its customers is essentially the outcome of the sound management of customer relationships.

ADGAS regularly conducts customer surveys designed to measure customer perceptions on a five-point scoring system covering image, satisfaction levels, products and services, support and services, and loyalty.

Local Suppliers

By supporting local business in Abu Dhabi and UAE in general in the supply chain, ADGAS indirectly attracts additional investment to the local economy. 

ADGAS follows ADNOC guidelines and procedures and implements a strict procedure in evaluating and selecting bidders. The evaluation is governed by the supplier HSE-prequalification, price, delivery time, specifications and performance. In line with ADNOC guidelines, ADGAS deals with foreign suppliers through local sponsors, which are entitled to a percentage of the foreign supplier contract, thus ensuring that some of this money is spent locally. 

Natural Resources 

ADGAS believes in conserving the country’s natural resources. The natural gas supplied from the upstream company ADMA-OPCO is the main natural resource consumed by ADGAS. We utilize high quantities of this natural gas in producing Liquefied Natural Gas (LNG) and other by-products, and in generating power and steam to keep our LNG plant operating. We make sure that our operations are efficient to capture all incoming natural gases from ADMA and enhance throughput by minimizing wastage through flaring and reducing opportunity losses.

Green Procurement

In line with ADGAS policy to improve HSE performance at all levels, ADGAS recognizes that it has a vital role in furthering sustainable development, through its procurement of goods and services. With this in mind, ADGAS adopted the “Green Procurement” practices, taking into consideration the social, economic and environmental impact that procurement has on people and communities. By implementing these practices, we aim to manage the procurement activities to promote eco-friendly solutions and to reduce the Carbon dioxide emissions caused by our operations.

To help in directing the focus toward sustainable procurement, the Green Procurement values were adopted. These values are:

  1. Local Value Creation: in order to promote the growth of local economy and ADGAS, we engage with local suppliers who can support us in creating additional value through innovation and cost saving.
  2. HSE: given our goal to zero LTI and fatality, we encourage our suppliers and contractors to adhere to the best safety practices and select those with best HSE record.
  3. Sustainable Purchasing: we look for suppliers who have sustainable practices that will help us achieve our sustainability objectives and exchange best practices.
  4. Values: we will work with suppliers who support ADGAS core values of HSE, Business Excellence, Quality and Commitment.


In addition to the above, ADGAS is committed to:

  • Minimize our environmental impact and deliver community benefits through better selection and improved usage of products and services.
  • Include sustainability issues as part of our contractor and supplier appointment process. 
  • Prohibit the use of products or processes that are potentially damaging to the environment, such as toxic materials or refrigerants with global warming potential, where a less environmentally damaging alternative is available.
  • Ensure that goods, services, equipment and utilities procured by ADGAS are designed, manufactured, delivered, used and managed at end-of-life in an environmentally and socially responsible manner.
  • Buy locally when possible to support the local economy and community and to minimize transportation impacts.
  • Educate, train and encourage our buyers to adopt more environmentally friendly alternative products.
  • Encourage the reduction of waste in both goods and the packaging of goods through effective inventory management and good storage and transportation practices.
  • Encourage the reuse of materials as a first priority in preference to the purchase of new materials.
  • Avoid procuring materials and substances with hazardous properties, and processes that could cause damage to the environment and health.
  • Encourage our suppliers to adopt practices that minimize their environmental impact and deliver community benefits in relation to their own operations.
  • Work in partnership with suppliers to achieve our common goals and continually improve performance over time.
  • Request details from sub-contractors regarding environmental policies, management systems, environmental breaches, and assess this information as part of our Company approval process.