Emerson teams up with Adnoc in manufacturing boost for UAE’s oil and gas sector

State-owned oil company identifies $19bn worth of products with local manufacturing potential

Vidya Ramnath of Emerson, left, and Saleh Al Hashmi of Adnoc signed agreements at Adipec. Photo: Adnoc
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Global technology and software company Emerson has teamed up with Adnoc to explore the production of equipments and devices for the UAE’s oil and gas industry.

The agreement will cover existing and potential manufacturing capacities for valves as well as programmable logic controllers and machine condition monitoring, all of which provide a deep insight into the health and status of the equipment, Emerson said on Monday.

Local manufacturing of distributed control systems — devices that offer better control over the production process — and emergency shutdown systems will also be explored.

“We are ready to work with investors and suppliers to enable them to set up, or expand, manufacturing in the UAE and we invite local and business partners to grasp the significant opportunities this will create,” Saleh Al Hashmi, commercial and In-Country Value director of Adnoc, said.

As part of the Make it in the Emirates campaign, Adnoc has identified Dh70 billion ($19.06bn) worth of products with local manufacturing potential, he said.

Oil and gas companies have been investing heavily in technologies such as artificial intelligence and the cloud to improve efficiency.

The oil and gas automation market is set to reach $24.6bn by 2025, growing at an annual rate of 7.5 per cent, consultancy Frost & Sullivan said.

Last year, the UAE launched its industrial strategy “Operation 300bn” to position it as a global industrial hub by 2031. The 10-year plan focuses on increasing the industrial sector's contribution to the country's gross domestic product from Dh133bn in 2021 to Dh300bn in 2031.

The strategy focuses on boosting production in 11 priority sectors, supporting the growth of national industries, attracting foreign investment, modernising legislation and ensuring the availability of dedicated financing for local industrial companies.

Last week, Adnoc signed agreements worth up to Dh35bn with 25 companies to stimulate investment in the local manufacturing of critical products such as pressure vessels, compressors and pipeline inspection gauges.

“We are delighted to partner with Adnoc to explore avenues and leverage our existing local manufacturing of equipment in the UAE, and we look forward to contributing to the development of the energy sector in the nation,” Vidya Ramnath, president of Emerson Middle East and Africa, said.

US-based Emerson helps process, hybrid and discrete manufacturers optimise operations, protect personnel, reduce emissions and achieve their sustainability goals through its automation solutions.

The UAE, Opec's third-largest oil producer, aims to boost its output to 5 million barrels per day by 2030.

The country, which plans to be carbon neutral by 2050, has Dh600bn worth of clean and renewable energy investments planned over the next three decades.

The Emirates is drawing up a plan to position itself as an exporter of hydrogen and tap into its future potential.

Hydrogen, which can be produced from both renewable energy and natural gas, is expected to play a key role in the coming years as economies and industries transition to a low-carbon world to mitigate climate change.

It comes in various forms, including blue, green and grey. Blue and grey hydrogen are produced from natural gas, while green is derived from splitting water by electrolysis.

The size of the global hydrogen industry is expected to hit $183bn by 2023, up from $129bn in 2017, said Fitch Solutions.

Updated: November 07, 2022, 1:29 PM