ADNOC signs multiple LNG supply agreements

Thursday, 26 November 2020
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ADNOC LNG has signed up to a six-year supply agreement with Vitol.

This calls for the sale of 1.8 mill tonnes per annum of post-2022 LNG volumes.

In addition, the Kuwait-based company signed a two-year supply agreement with Total for 0.75 mill tonnes of 2021 and 2022 LNG volumes.

Speaking at the recent Abu Dhabi International Petroleum Exhibition and Convention (ADIPEC), Fatema Al Nuaimi, ADNOC LNG CEO, said: “We are pleased to partner with both Vitol and Total on these major deals as they will create reliable, long-term benefits for our company and shareholders.

“Through collaboration and by adopting a partnership approach, we are driving new growth opportunities for ADNOC and are maximising the value of our nation’s resources.

“These agreements demonstrate the success of our commercial strategy in unprecedented times and confirm the market’s growing confidence in demand for natural gas. LNG is a fuel that can support the transition to clean energy, especially in many Asian markets where switching to gas will result in significant environmental gains.

“As a customer-focused business, we will continue to meet the growing demand for LNG as a key fuel in both today’s energy mix and looking ahead to the future,” he concluded.

Pablo Galante Escobar, Vitol’s Head of LNG, said: “We are proud to conclude another significant milestone with ADNOC, an important partner across key business areas. For Vitol LNG, this most recent development strengthens our ability to ensure diverse and secure supply to our customers around the world.”

Thomas Maurisse, Total’s Senior Vice President LNG, added: “This new supply agreement contributes to the growth and flexibility of Total’s LNG portfolio and strengthens our long-standing relationship with ADNOC LNG.”

Multiple customers

As well as developing new markets, ADNOC LNG has moved from supplying one customer to multiple customers. The agreements with Vitol and Total continue the transition to a multi-customer strategy that began in 2019, the company said.

Since then, ADNOC LNG has shifted from supplying 90% of its LNG to a single customer in Japan, which remains an important client, to supplying 90% of its LNG to a range of buyers, and in more than eight countries from across Southern and Southeast Asia.

ADNOC LNG produces about 6 mill tonnes per annum of LNG from its facilities on Das Island off the coast of Abu Dhabi.

The company is owned by ADNOC (70%), with Mitsui & Co (15%), BP (10%), and Total (5%) comprising the remaining shareholders. 

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