Adnoc Gas signs 3-year LNG supply agreement with TotalEnergies

Adnoc Gas announced on Monday a $1 billion deal to provide liquefied natural gas to France’s TotalEnergies as Europe scrambles to find alternatives to Russian energy sources.

The liquefied natural gas provided under the three-year supply deal “will be delivered to various export markets around the world”, a company statement said.

The agreement is valued at between $1 billion and $1.2 billion, the statement said.

The deal was signed with TotalEnergies Gas and Power Limited, a subsidiary of the French multinational.

Adnoc Gas, which only became operational at the start of this year, is a subsidiary of state-owned energy giant Abu Dhabi National Oil Company (Adnoc).

The UAE has emerged as a key partner for Western countries as they scramble to secure energy deals worldwide to replace imports from sanctions-hit Russia.

In July, a deal between Total Energies and Adnoc was signed “for cooperation in the area of energy supplies” in Paris.

In 2021, the UAE produced 57 billion cubic metres (bcm) of natural gas, or about 1.4 per cent of global output, according to the BP Statistical Review of World Energy.

That same year, the Emirates exported 8.8 bcm of LNG, 1.7 per cent of world LNG exports, the Statistical Review said.

The UAE is looking to boost its LNG production capacity to 15 million tons annually in the next fear years, according to Bloomberg.

Adnoc Gas Signs 3-year LNG Supply agreement with TotalEnergies Gas and Power

Agreement reinforces Adnoc Gas’ position as a reliable global supplier of natural gas, an important fuel for the energy transition

Value of agreement is expected to be in range of 1 billion USD to 1.2 billion USD under current market conditions

Adnoc Gas plc (“Adnoc Gas” or the “Company”), a worldclass integrated gas processing company, today announced a three-year supply agreement with the French multi-energy company TotalEnergies Gas and Power Limited a subsidiary of TotalEnergies, a French multinational energy company, for the export of liquefied natural gas (LNG).

The deal underscores Adnoc Gas’ position as a global LNG export partner of choice and cements TotalEnergies as a key strategic partner for Adnoc Gas in the LNG market, representing another important milestone as Adnoc Gas expands its global reach. Under the terms of the agreement, through its subsidiary, Adnoc Gas will supply TotalEnergies LNG, which will be delivered to various export markets around the world. The agreement demonstrates Adnoc Gas’ ability to meet growing global demand for LNG, a critical energy transition fuel.

Ahmed Alebri, Chief Executive Officer of Adnoc Gas, said: “Our new LNG supply agreement with TotalEnergies represents another significant milestone in our strategy to expand our global reach and strengthens our position as the LNG export partner of choice for leading global energy businesses. This agreement reflects our commitment to meeting the needs of our customers by offering supply security, price competitiveness, and flexibility. We look forward to continuing our long-term strategic partnership with TotalEnergies, building on our shared commitment to sustainability and the energy transition.”

TotalEnergies has a longstanding 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. These additional volumes will strengthen our global LNG portfolio, our ability to supply the growing Asian markets, and our ambition to accompany our customers in their energy transition.” said Thomas Maurisse, Senior Vice President LNG at TotalEnergies.

The three-year contract is expected to commence in 2023 and will run through 2025, reinforcing both companies’ positions as key players in the global LNG market.

• Business