ADNOC and a Japanese energy company ink a multimillion-dollar deal for LNG
Solidifying the bond between UAE and Japan
ADNOC Gas plc has recently finalized a substantial multiyear liquefied natural gas (LNG) supply deal, estimated to be worth between $500 million (AED 1.8 billion) and $700 million (AED 2.5 billion) with JERA Global Markets, a trading subsidiary of JERA Co., Inc. This agreement solidifies the enduring partnership between the United Arab Emirates (UAE) and Japan, further establishing ADNOC Gas as a preferred global LNG export partner, as stated in their press release. Specific terms of the agreement, including the volume of LNG deliveries, have not been disclosed.
ADNOC Gas has been supplying LNG from its production facilities on Das Island in the Persian Gulf, which was established in the 1970s, to the Tokyo Electric Power Company, a parent company of JERA, for over four decades. “This LNG supply agreement marks a significant milestone in ADNOC Gas’ long-standing strategic partnership with JERA, demonstrating our continuous and shared commitment for advancing sustainability in the energy sector and supporting a reliable and cleaner energy future for Japan and beyond”, ADNOC Gas CEO Ahmed Alebri said.
“We are pleased to continue our LNG partnership with ADNOC Gas as the JERA Group continuously looks towards strengthening our global LNG portfolio with stable, flexible, and competitive LNG supply, which is essential in the energy transition”, JERA Global Markets Chairman Kazunori Kasai said.
This newly announced deal is part of ADNOC Gas's ongoing efforts to secure significant international LNG sales agreements. Recent agreements include collaborations with PetroChina International Co., Ltd. (PCI), Japan Petroleum Exploration Co., Ltd. (JAPEX), TotalEnergies Gas and Power, and India Oil Corporation (IOCL). These agreements, signed since the company's listing in March, collectively represent a total value between $9.4 billion (AED 34.5 billion) and $12 billion (AED 44 billion), according to ADNOC Gas.
In a previous development, in September, ADNOC Gas closed an LNG supply agreement with PCI worth between $450 million and $550 million, with specific volume details undisclosed. An agreement was also signed in August with JAPEX for a similar amount. Notably, in July, ADNOC Gas announced a substantial deal with state-owned IOCL, spanning between $7 billion and $9 billion over a 14-year period to deliver up to 1.2 million metric tons of LNG annually. Concurrently, ADNOC Gas plc has awarded a substantial $615 million (AED 2.26 billion) engineering, procurement, and construction (EPC) contract to Petrofac Emirates LLC. This contract is for the development of carbon capture units, pipeline infrastructure, and a network of wells for carbon dioxide injection at the Habshan gas processing plant. This project is a pivotal component of the Abu Dhabi National Oil Company's (ADNOC) accelerated decarbonization plan. Known as the Habshan Carbon Capture, Utilization, and Storage (CCUS) project, it stands as one of the most significant carbon capture initiatives in the Middle East and North Africa (MENA) region. The project's capacity is set to capture and permanently store 1.5 million tons per annum (mtpa) of carbon dioxide within geological formations deep underground, as announced by ADNOC Gas and Petrofac in separate releases earlier in the month. The captured carbon dioxide will be injected and securely stored in ADNOC Onshore's Bab Far North Field, located approximately 150 miles southwest of Abu Dhabi. The project is expected to be commissioned in 2026, with ADNOC Gas assuming the responsibility for its construction, operation, and maintenance on behalf of ADNOC.
Comments