LNG News Editor:
Abu Dhabi National Oil Company’s LNG unit has signed a supply agreement with global commodities company Vitol for the sale of 1.8 million tonnes per annum of cargoes for six years and another two-year deal with French major Total for 750,000 tonnes.
“We are proud to conclude another significant milestone with Adnoc, an important partner across key business areas,” said Pablo Galante Escobar, Vitol’s Head of LNG.
“For Vitol LNG, this most recent development strengthens our ability to ensure diverse and secure supply to our customers around the world,” he stated.
Vitol’s volumes will be supplied post-2022 and Total’s two-year deal will cover 2021 and 2022 LNG volumes.
The deals coincided with the Abu Dhabi International Petroleum Exhibition and Convention (ADIPEC) taking place in the United Arab Emirates.
Adnoc LNG produces about 6 MTPA of LNG from its liquefaction plant on Das Island off the coast of Abu Dhabi.
Adnoc’s stake in the liquefaction company is 70 percent while Japan’s Mitsui & Co owns 15 percent, BP of the UK 10 percent and Total 5 percent.
“This new supply agreement contributes to the growth and flexibility of Total’s LNG portfolio and strengthens our long-standing relationship with Adnoc LNG,” said Thomas Maurisse, Total’s Senior Vice President for LNG.
The UAE is the longest-standing LNG exporter in the Middle East and shipped its first cargo in 1977.
Since 2019, Adnoc LNG has been adopting a multi-customer strategy after previously sending 90 percent of its volumes to Japan.
This has been reversed as long-term contracts expired and only 10 percent of output is now shipped to Japan and 90 percent is supplied to a range of customers in about eight countries in Asia.
Fatema Al Nuaimi, Chief Executive of Adnoc LNG, said her company was pleased to partner with both Vitol and Total on these major deals as they would create reliable, long-term benefits for Adnoc and the shareholders.
“Through collaboration and by adopting a partnership approach, we are driving new growth opportunities for Adnoc and are maximizing the value of our nation’s resources,” she stated.
“These agreements demonstrate the success of our commercial strategy in unprecedented times and confirm the market’s growing confidence in demand for natural gas,” explained Al Nuaimi.
“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,” she said.