Adnoc’s eMarketplace drives efficiency in local supply chain

Dr Saleh Al Hashemi, Adnoc’s Director of Commercial and In-Country Value (ICV) Directorate, said that Adnoc’s new eMarketplace is a centralised digital platform that is enhancing the speed and efficiency of its procurement pipeline and programmed to put local suppliers first.

In a statement to the Emirates News Agency (WAM), Dr Al Hashemi said that the eMarketplace is accelerating procurement timelines for important products and materials, adding that “It’s a centralised digital platform that has reduced the timeline from orders to delivery, from an average of 38 days to just three days.”

He added, “It has also cut tender volume by 90%, but most importantly, the eMarketplace is configured to favour suppliers operating out of local manufacturing facilities, who offer the best prices. For example, two of our most in-demand Maintenance, Repair and Operations products - gaskets and fasteners - are exclusively supplied by local manufacturers within the eMarketplace, with over Dhs176 million worth of contract awards.”

Dr Al Hashemi highlighted that Adnoc is a critical engine for the UAE’s industrial growth, noting that “Adnoc is strengthening this role by localising our supply chain and creating long-term domestic manufacturing opportunities for the private sector.

“We have driven Dhs145 billion back into the UAE economy since our ICV programme began in 2018 and have targeted local manufacturing of Dhs70 billion worth of products in our procurement pipeline by 2027.”

He added that Adnoc agreements signed at the “Make it in the Emirates” forum this year are helping to strengthen and diversify the UAE’s economy, and it is estimated they will contribute 10% of Abu Dhabi’s Dhs172 billion ($46.9 billion) industrial sector target for 2031, and potentially create up to 21,500 jobs.

“Our prioritisation of local manufacturing is also assisting our drive to reduce the carbon intensity of our operations by 25% by 2030 by shortening our supply chains,” Dr. Al Hashemi noted.

Regarding how localising manufacturing contributes to Adnoc’s Net Zero by 2045 ambition, he said that investing in local industry has the potential to significantly reduce the carbon emissions in Adnoc’s procurement pipeline. Importing international products requires major energy consumption through transport and logistics, generating significant CO2 emissions.

“We’ve developed a large catalogue of products that we’ll source locally, and we’re also prioritising investment in sustainable solutions and technologies, encouraging local suppliers to use sustainable materials, energy-efficient production processes and technologies, and meet environmental compliance standards,” he explained.

On some of the sustainable products in the catalogue, he said that investing in renewable energy and hydrogen are critical priorities for Adnoc. “We’ve identified a range of vital green energy supplies, including solar PV panels and batteries, as well as electrolysis, hydrogen purification, compression and storage equipment. Methane detection devices are also vital to our measurement and reduction of emissions.

“At the same time, we are encouraging local production of Electric Submersible Pumps and Variable Speed Drive systems, which provide durable and remote operation capabilities that help us to reduce our energy consumption through high-precision power delivery. There are many more sustainable products, ranging from activated alumina and molecular sieves, that absorb and remove impurities from liquids and gases, drilling, mechanical equipment, and even telecom technology.” Regarding how Adnoc’s ICV programme empowers UAE nationals, Dr. Al Hashemi stated that nurturing and empowering UAE national talent is a top priority for Adnoc.

“Our ICV programme has created 5,000 skilled jobs for UAE nationals in Adnoc’s supply chain since it was launched in 2018, and we are building on this achievement through our recent partnership with Nafis to create an additional 5,000 private sector jobs for UAE Nationals in advanced sectors such as nanotechnology, manufacturing and machine learning by 2027.

Adnoc, he added, regularly hosts career weeks encouraging registered suppliers to recruit and nurture local talent and that the company will continue to empower them to build successful careers and contribute to the UAE’s economic development and prosperity.

Adnoc has announced recently a final investment decision (FID) to develop one of the largest carbon capture projects in the Middle East and North Africa (Mena) region.

The pioneering Habshan carbon capture, utilisation and storage (CCUS) project will have the capacity to capture and permanently store 1.5 million tonnes per annum (mtpa) of carbon dioxide (CO2) within geological formations deep underground.