Adnoc Gas, the new unit of UAE’s energy giant Adnoc, has signed a three-year LNG supply deal with a unit of France’s TotalEnergies worth up to $1.2 billion.
Under the terms of the agreement with TotalEnergies Gas and Power, Adnoc Gas expects to start supplying LNG to TotalEnergies LNG in 2023 for a period of three years until 2025.
The firm said these supplies will be delivered to various export markets around the world.
Adnoc Gas said value of the agreement is expected to be in range of $1 billion to 1.2 billion under current market conditions.
The firm did not reveal the amount of LNG it will supply under the deal which “cements” TotalEnergies as a key strategic partner for Adnoc Gas in the LNG market.
TotalEnergies has a longstanding presence in the UAE having operated in the country for more than 80 years.
Ahmed Alebri, CEO of Adnoc Gas, said in the statement that the new LNG supply agreement with TotalEnergies represents “another significant milestone in our strategy to expand our global reach and strengthens our position as the LNG export partner of choice for leading global energy businesses.”
Moreover, Thomas Maurisse, senior VP LNG at TotalEnergies, said these additional volumes “will strengthen our global LNG portfolio, our ability to supply the growing Asian markets, and our ambition to accompany our customers in their energy transition.”
Adnoc’s LNG plans
Adnoc launched its new gas and LNG unit, Adnoc Gas, on January 1 as it looks to further expand its international presence.
Adnoc owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.
Besides this terminal, Adnoc is also working on the second LNG export plant in Fujairah.
According to Adnoc, the Fujairah LNG terminal would have two 4.8 mtpa LNG trains, boosting the company’s LNG production capacity by 9.6 Mtpa, as it looks to respond to the growing global demand for natural gas.
Besides this, Adnoc is working to renew its fleet of LNG carriers and has already ordered six new vessels at China’s Jiangnan Shipyard.