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Etihad Energy signs 10-year fuel supply deal with Fujairah government
DFM-listed company says long-term agreement supports new refinery project, with investment estimated at up to $350 million and expected to generate around $1 billion in long-term value.
- PUBLISHED: Tue 7 Jul 2026, 9:39 AM
Etihad Energy Holding has signed a 10-year offtake agreement with the Government of Fujairah for the purchase of gasoline produced by its planned Etihad Refinery, marking a key commercial milestone for the project and strengthening Fujairah's position as a regional energy hub.
The Dubai Financial Market-listed company said the agreement establishes a long-term framework for the sale of gasoline and other refined petroleum products that will be produced by the refinery once it becomes operational. The agreement became effective on July 6, 2026, and will remain in force for 10 years.
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Etihad Energy said the project will process naphtha into Euro 5 specification gasoline and related refined products, helping meet regional demand for cleaner transportation fuels while complementing the group's existing storage and logistics operations.
The refinery will utilise the company's existing Phase 1 and Phase 2 storage tanks as part of its operations.
The company has already commenced engineering and design studies after appointing Honeywell UOP and PEG, with the total project cost currently estimated at between $300 million and $350 million. A timeline for commercial operations will be announced after completion of the engineering studies and the final investment decision (FID).
Etihad Energy expects the refinery project to generate at least $1 billion in additional long-term value for the company and its shareholders once commercial production begins, although the estimate remains subject to the outcome of ongoing studies and the final investment decision.
Saif Al Hazaimeh, Group Chief Executive Officer of Etihad Energy Holding, said the agreement reflects confidence in the company's strategy to build an integrated energy infrastructure platform.
"The signing of this agreement marks an important milestone in the advancement of the Etihad Refinery Project," he said.
"We are proud to collaborate with the Government of Fujairah in supporting the UAE's strategic objectives for the energy sector, including strengthening downstream industries, creating employment opportunities for UAE nationals and reinforcing Fujairah's position as a strategic gateway to global energy markets."
The company said the project forms part of its broader strategy to expand its integrated energy infrastructure platform across refining, storage, logistics and maritime infrastructure.
It added that the agreement also supports the UAE's long-term vision of strengthening downstream petroleum industries, enhancing supply-chain resilience and creating sustainable economic value through strategic energy investments.
Fujairah is home to one of the world's largest oil storage and bunkering hubs and continues to attract major investments aimed at strengthening its role in regional and international energy trade, the company added.
