Located in the capital of the UAE, Al Fanar Gas is one of the country’s leading oil and gas companies. Now, as the UAE is focusing more on the future of sustainability, Group CEO Moustafa Rashad explained how Al Fanar is getting involved, in an exclusive interview with Inside Oil & Gas. Report written by Imogen Ward.
With the largest market share of LPG in Abu Dhabi, it is safe to say that Al Fanar Gas has achieved a lot over its 33-year history. Currently maintaining a solid market share of 90%, the group is now looking to further its presence within the green energy sector.
“Following many years of success, Al Fanar is now entering the world of sustainability and green energy,” Group CEO Moustafa Rashad said.
“We have conducted many studies with multinational companies who are working with green and blue hydrogen as well as ammonia, and we are looking into carbon capture projects too. These developments have been made to match the UAE’s COP28 vision, and the evolving requirements of the market.”
Al Fanar has been adding value to the oil and gas sector since it first began operating in 1990. With expertise in LPG, SNG and NG, Al Fanar provides a comprehensive service from concept to commissioning, and its installations can be found in more than 70% of Abu Dhabi’s most iconic buildings
Now, with a growing interest in the green energy sector, Al Fanar has successfully diversified its capabilities. With the backing of several key partnerships, the company
is well on its way to enhancing its presence in sustainable energy.
“We believe that we must have some diversity in our work, and to check new business and revenue streams – especially now the world is moving from fossil fuels to sustainable clean energy,” Mr Rashad said. “Currently, clean energy only supplies around 4.7 per cent of the country’s energy demand. So, we still have a long way to go.”
Looking inwardly, Al Fanar is also implementing internal change to improve its own
carbon footprint. It is currently in the process of converting its fleet of 14 gas trucks to NG power, which is a much cleaner alternative. The group is on a mission to eliminate its use of paper in-house as well.
Bringing projects to life
Whilst strengthening its presence within the green energy sector, Al Fanar also has some other major projects on the go. Most recently, the company won a project with Abu Dhabi Ports that is equivalent to AED125 million.
Excitingly, this partnership has also resulted in the establishment of a new company, KEZAD Industrial Services, created from the combination of both businesses’ expertise. The new company will target the investor’s demand for energy, developing and providing new solutions for customers. Al Fanar already heads the UAE’s SNG sector, having installed more than 80% of the country’s total SNG stations.
Al Fanar has also signed several agreements with significant clients within the hospitality sector, including Line Investments & Property (the Abu Dhabi-based shopping mall development and management division of Lulu Group).
“For the past 10 years, we have held a corporate agreement with Line Investments & Property, supplying all its completed mall
projects,” Mr Rashad said. “We also have long-term contracts with Abu Dhabi National Hotel, Marriott Group, NCT&H and Millennium Group.” These contracts have enabled Al Fanar to supply gas for more than 150 hotels within the UAE.
Another successful venture close to home saw Al Fanar working with DAMAC, a large property developer situated within Dubai. Featuring townhouses and villas, DAMAC Lagoons has installed Al Fanar’s gas infrastructure. The company supplies this Mediterranean-inspired neighbourhood with all the gas needed to meet the requirements of a bustling community.
“Under DAMAC’s portfolio, we are supplying more than 20,000 clients,” Mr Rashad added.
Attending ADIPEC
When it comes to creating meaningful partnerships within the oil and gas sector, Al Fanar thrives. One such example is ADNOC. Since 2016, the group has been approved as one of ADNOC’s main gas distributors.
“Up until the present day, we have completed many tenders for ADNOC, managing the whole operation and maintenance of LPG and natural gas for Abu Dhabi’s new islands,” Mr Rashad said. “As an authorised distributor of LPG for ADNOC, we have successfully distributed more than 100 million litres/year to its customers.”
The relationship between these two entities does not end here though. ADNOC also hosts ADIPEC, a hugely successful oil and gas technical conference. Occurring in Abu Dhabi each year, ADIPEC brings together industry heads from all over the planet to
share knowledge, cutting-edge technology and expertise in order to spearhead change. As a regular attendee, Al Fanar finds the conference incredibly insightful.
“We have been continuously participating in ADIPEC for eight years now,” Mr Rashad said. “The conference really helps us to understand what is happening with other
market players and big names within the industry. It gives us the opportunity to touch base with the latest innovations and technology, and also enables us to improve as a company. Most importantly, it allows us to get our name out there and prove that Al Fanar is a company that consumers can trust, and it really is just a great chance to spend four days celebrating the success of everyone in the industry.”
Forward into the future
Al Fanar has its eyes set on expansion. Having laid out a five-year strategic growth plan in 2022, the company has been completing quarterly assessments to ensure it is on track to meet its 2027 deadline. When it comes to expansion, the company is aiming big, looking at new markets in the Middle East, Asia and Europe.
“We are looking at making several acquisitions, mainly in Saudi Arabia, but also in Eastern Europe,” Mr Rashad said.
“We believe that we can add value to Europe’s energy supply.”
On a final note, Mr Rashad discussed the importance of safety in Al Fanar’s operations: “We have a strategy to be number one, without compromising safety, and we have been working closely with the Department of Energy in Abu Dhabi, to put forward new regulation safety criteria for the gas industry – specifically when it comes to gas cylinders. They aren’t safe and should be removed from use.” n
