ADNOC Gas will supply up to 1.6 million tons of LNG to TotalEnergies over the next five years under an agreement announced on Tuesday by the gas unit of Abu Dhabi’s state energy firm and the French supermajor.
The first LNG deliveries will begin as early as this year, said TotalEnergies, which is one of the world’s biggest LNG traders.
“Thanks to its perfect location between Europe and Asia, this new supply will enable TotalEnergies to confirm its position as one of the main LNG portfolio suppliers,” said Stéphane Michel, President Gas, Renewables & Power at TotalEnergies.
ADNOC Gas, for its part, stressed on the continued growth in global LNG demand and how the Abu Dhabi company is well positioned to capture the growth opportunity.
“This agreement reflects the strength of our LNG business, the competitiveness of our supply offering and our ability to secure long-term partnerships that support growth, enhance resilience and create lasting value for shareholders,” ADNOC Gas CEO Fatema Al Nuaimi said.
Despite the severely constrained LNG flows through the Strait of Hormuz over the past eight months, the UAE is confident that the long-term prospects of global LNG demand remain on the upside and are an opportunity to grow its gas supply business.
The UAE is currently developing the Ruwais LNG project in Al Ruwais Industrial City in Abu Dhabi. Ruwais LNG will have 9.6 million tons per annum (mtpa) of production capacity, and most of it has been committed to international buyers across Asia and Europe through long-term agreements.
The ADNOC Gas-TotalEnergies supply deal comes a few months after ADNOC launched a global LNG marketing and trading platform that combines the LNG marketing operations of ADNOC Gas and XRG with the trading capabilities of ADNOC Trading.
Through the marketing and trading consolidation, ADNOC targets 47 million mtpa of combined marketable LNG by 2035, a scale that would place its new platform among the world’s leading LNG marketers and traders.
By Tsvetana Paraskova for Oilprice.com
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