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Jera Global Markets, a joint venture between majority shareholder Japan’s Jera and France’s EDF, and Adnoc Gas announced the deal in separate statements on Monday.
Under the terms of the agreement, LNG will be supplied from Adnoc Gas to Jera Global Markets’ global supply portfolio over a period of three years.
Adnoc Gas will deliver the LNG supplies from its Das Island facility.
Adnoc owns a 70 percent stake in Adnoc LNG, which currently produces about 6 mtpa of LNG from its facilities on Das Island.
According to Adnoc Gas, Das Island has shipped over 3,500 LNG cargoes worldwide since beginning operations in 1977.
Adnoc’s LNG production facilities on Das Island supplied LNG to Tokyo Electric Power, one of the parent companies of Jera along Chubu Electric, for over 40 years.
This latest agreement builds upon a similar 2023 supply deal between Adnoc Gas and Jera Global Markets.
That multi-year LNG supply deal is worth between $500 million and $700 million.
Fatema Al Nuaimi, CEO of Adnoc Gas said this agreement builds on the “robust” UAE-Japan energy relationship and decades of collaboration between Adnoc Gas and Jera.
“As a utility-backed trader, Jera Global Markets’ purpose is to provide energy security to the communities that we serve,”
This supply agreement with our long-standing partner ADNOC Gas reflects the active measures we take to ensure that our global portfolio remains diverse, flexible, and competitive,” Kazunori Kasai, Jera’s chief optimization officer and chairman of Jera Global Markets said.
Doubling LNG capacity
Besides the Das Island facility, Adnoc is building its second LNG terminal in the UAE.
Adnoc Gas said in November 2024 it expects to splash about $5 billion to buy a 60 percent operating interest from its parent Adnoc in the 9.6 mtpa Al Ruwais LNG export plant.
BP, Mitsui & Co., Shell, and TotalEnergies agreed to buy a 10 percent equity stake in Adnoc’s LNG export terminal.
In June 2024, Adnoc announced the final investment decision on the Ruwais project and the EPC award to the joint venture led by Technip Energies.
The LNG project will more than double Adnoc’s existing UAE LNG production capacity to around 15 mtpa, as the company builds its international LNG portfolio.
