ENN Signs ADNOC Supply Agreement in Biggest UAE-China LNG Deal | OilPrice.com
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Breaking News:
Chinese privately held firm ENN Natural Gas has signed a 15-year deal to source LNG from ADNOC’s new liquefied natural gas export project, in the biggest agreement between China and the United Arab Emirates on LNG supply so far.
ENN LNG (Singapore), a wholly owned subsidiary of ENN Natural Gas, has signed the long-term LNG sale and purchase agreement the national oil and gas firm of the UAE, under which ADNOC will supply approximately one million tons per annum (mtpa) of LNG to ENN NG for a period of 15 years, the Chinese firm said on Monday.
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The LNG will primarily be sourced from ADNOC’s Ruwais LNG project.
The agreement “marks the largest LNG deal by volume ever signed between the UAE and a Chinese partner,” ENN said.
The deal comes amid escalating trade tensions and tariffs between the United States and China.
Chinese LNG buyers have already stopped purchases of U.S. LNG and are reselling already bought or contracted cargoes as the Chinese tariffs on U.S. goods make imports of America’s LNG uneconomical.
Following the tariffs, Chinese LNG buyers with long-term supply contracts with U.S. producers have started reselling the cargoes to Europe, Bloomberg reported, citing trading sources. What’s more, Chinese traders have grown cold towards new long-term commitments for future supply from the United States, instead seeking long-term deals with gas producers in the Middle East and the Asia Pacific.
ENN’s press release from Monday also hinted at the global trade shifts.
“Against the backdrop of deep shifts in global gas supply dynamics and heightened price volatility, the SPA represents a major step forward in ENN NG’s strategy to enhance the resilience of its energy supply chain and diversify its global portfolio,” the Chinese company said.
In a separate but similar move, Chinese state trader Zhenhua Oil has agreed a 5-year deal with ADNOC starting in 2026 for up to 12 cargoes per year, a Chinese industry source with direct knowledge of the deal told Reuters.
ADNOC also opened its Beijing office last week to boost business relationships with Chinese customers and partners. Sultan Ahmed Al Jaber, who is ADNOC’s CEO and UAE minister of industry and advanced technology attended the office inauguration on April 18.
By Tsvetana Paraskova for Oilprice.com
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