LNG

ADNOC Gas, the recently spun-off subsidiary of Abu Dhabi National Oil Co (ADNOC), has signed its first big deal since the floatation in the form of a three-year LNG supply agreement with French major TotalEnergies.

Following an initial public offering completed in March 2023, ADNOC Gas is now listed on the Abu Dhabi Securities Exchange as a separate company and is responsible for running Abu Dhabi’s world-scale LNG, natural gas processing and gas marketing operations in the United Arab Emirates.

The ADNOC Gas liquefaction plant on Das Island in the Arabian Gulf currently has export capacity of 6 million tonnes per annum and TotalEnergies is already a customer.

A statement said that the ADNOC Gas supply deal with TotalEnergies was with the French company’s Gas and Power unit and was for a period of three years, though the volumes involved were not immediately disclosed.

“Our new LNG supply agreement with TotalEnergies represents another significant milestone in our strategy to expand our global reach and strengthen our position,” said Ahmed Mohamed Alebri, Chief Executive of ADNOC Gas.

Commitment

“This agreement reflects our commitment to meeting the needs of our customers by offering supply security, price competitiveness,and flexibility,” Alberi added.

TotalEnergies has a long-standing presence in the UAE, having operated in the country for more than 80 years.

“We are pleased to have signed this three-year contract with our long-standing strategic partner,” said Thomas Maurisse, Senior Vice President LNG at TotalEnergies.

“These additional volumes will strengthen our global LNG portfolio and our ability to supply the growing Asian markets,” Maurisse added.

The three-year contract is expected to commence in 2023 and will run through 2025.

The ADNOC Gas IPO followed the sale of 5 percent of its shares for around $2.5 billion and the company is now listed on the Abu Dhabi Securities Exchange.

In addition to operating the Das Island LNG plant ADNOC Gas now independently runs eight processing sites, both onshore and offshore, and has a pipeline network of over 3,250 kilometres (2,020 miles) in length in the region.

Existing joint venture partners in the company’s LNG plant include Japan’s Mitsui & Co and UK major BP, as well as TotalEnergies.

TotalEnergies is also a gas-processing partner of ADNOC Gas and Shell and Thailand’s PTT Exploration and Production have similar joint venture partnerships with the company.

Italian natural gas network company and LNG importer SNAM reported a more than 8 percent increase in net profits as more natural gas was used in Italy and it benefited from foreign investments in the Trans-Adriatic Pipeline bringing gas from Azerbaijan and its stake in the Abu Dhabi’s pipelines system in the United Arab Emirates.

Abu Dhabi National Oil Company (ADNOC), the longest-standing LNG producer in the Middle East for the United Arab Emirates, which is the third-largest oil producer in OPEC, is expected to proceed with an initial public offering of a stake in the ADNOC Drilling company with operations on land and sea.

Italian natural gas network operator Snam, one of Europe’s leading energy infrastructure companies and operator of two LNG import terminals, reported an almost 4 percent rise in nine-month revenues to €2.03 billion ($2.40Bln) even as natural gas demand dropped because of Covid-19 lockdowns.

Italian natural gas network operator Snam, one of Europe’s leading energy infrastructure companies, said the volumes of gas injected into Italy’s network in the first half totalled 35.71 billion cubic metres, down 10.3 percent from the same period in 2019 because of the Covid-19 lockdown.

Snam Rete Gas, the Italian natural gas network operator, has decided to recommission storage at the nation’s oldest LNG import terminal near Genoa while also completing a $10 billion deal for a minority stake in gas pipelines in the United Arab Emirates.