Adnoc Gas, a subsidiary of the Abu Dhabi National Oil Company (Adnoc), has signed a five-year liquefied natural gas supply deal with Japan Petroleum Exploration Company (JAPEX), as it continues to expand its presence in the Asian markets.
Adnoc confirmed the development on Thursday and said the contract is “valued between $450 million and $550 million.”
The Emirati giant stated that the LNG deal builds on “the long-standing bilateral relationship between the UAE and Japan and Adnoc’s track record of fostering mutually beneficial strategic partnerships with Japanese energy companies.”
Ahmed Alebri, chief executive of Adnoc Gas said the agreement reinforces the company’s “position as a global LNG export partner of choice,” and its growing global presence, particularly in the Asian LNG market.
While Adnoc has revealed the potential value of the LNG deal with the Japanese giant, it did not disclose the annual gas supply volumes.
The Adnoc subsidiary recently inked long-term LNG supply agreements with French giant TotalEnergies and India Oil Corporation (IOCL).
“The three-year TotalEnergies agreement will see LNG delivered to multiple markets around the world, while the 14-year IOCL agreement will enable the export of up to 1.2 million tonnes per annum of LNG to India’s largest integrated and diversified energy company,” the operator stated.
Unlocking UAE’s vast natural gas resources
Adnoc Gas was created on 1 January, combining Adnoc LNG and Adnoc Gas Processing.
The consolidation of Adnoc’s gas processing and LNG operations is expected to create one of the world’s largest gas processing entities, with a capacity of about 10 billion cubic feet per day across eight sites, onshore and offshore, and a pipeline network of over 3250 kilometres, according to Adnoc.
“As Adnoc grows its gas production and processing capacity, the combined scale and capabilities of Adnoc Gas will maximise value and create new opportunities for Adnoc, its partners [and the UAE],” Adnoc earlier said.
Adnoc chief executive Sultan Ahmed Al Jaber has said the formation of the new company “represents another major milestone in unlocking the full value of the UAE’s vast natural gas resources”.
“Natural gas will be a critical fuel in the energy transition and Adnoc Gas, through its world-scale operations and significant growth and expansion plans, will be well-positioned to meet both local and international gas demand,” he added.
Adnoc LNG includes among its partners Japan’s Mitsui & Co, UK supermajor BP and French giant TotalEnergies; while Adnoc Gas Processing comprises UK supermajor Shell, TotalEnergies and Thailand’s PTTEP.
Exporter and domestic provider
Adnoc is building the 10 million tpa Ruwais liquefaction project and aims to emerge as a long-term exporter of LNG, while also achieving domestic self-sufficiency in natural gas.
It is also spending billions of dollars on developing the complex Hail & Ghasha sour gas fields, which could add to up to 1.5 Bcfd of gas production in the coming years.
