Adnoc Gas PLC has signed an agreement with PetroChina International Co. Ltd. (PCI) to supply liquefied natural gas (LNG) to China’s main fossil fuel distributor.
The deal is worth $450-550 million, subsidiary Abu Dhabi National Oil Co. said. (Adnoc) in a press release, without revealing the agreed volumes.
“This agreement highlights the growing global presence of ADNOC Gas, particularly in the East and South Asian markets,” the press release said. “Natural gas plays a crucial role as a transition fuel, generating lower carbon emissions compared to other fossil fuels, and ADNOC Gas is committed to ensuring a reliable supply to its customers worldwide.”
Adnoc Gas CEO Ahmed Mohamed Alebri said the deal boosts Adnoc Gas’ position “in one of the fastest growing gas markets in the world”.
“China remains a key market for ADNOC Gas, and this deal further strengthens our role as a major LNG supplier to East and South Asia, and beyond,” Alebri said in a statement .
PCI Chairman Wu Junli commented: “Energy is an important area of ​​cooperation between China and the UAE. We are delighted to partner with ADNOC Gas, a company committed to providing a of stable and reliable energy with low carbon emissions. This agreement signifies an extension of the cooperation between our two companies and reaffirms PCI’s commitment to ADNOC Gas as a global partner.”
PCI is a subsidiary of PetroChina Co. Ltd., which is state-owned China National Petroleum Corp.
The agreement follows another signed by Japan Petroleum Exploration Co.’s Adnoc Gas. Ltd. (JAPEX). The five-year LNG supply deal is worth $450-550 million, Adnoc Gas announced on 17 August.
“Japan is one of the largest and most important energy partners of the UAE and we are very pleased to strengthen this relationship through this LNG supply agreement with JAPEX,” Alebri said at the time.
“ADNOC Gas continues to take advantage of the opportunities arising from ADNOC’s integrated gas master plan that links all parts of the gas value chain in the UAE, ensuring a sustainable and economical supply of natural gas to meet local and international demand Adnoc Gas said at the JAPEX deal. announcement
Adnoc Gas earlier announced a deal with state-owned Indian Oil Corp. Ltd. (IOCL) for the supply of up to 1.2 million metric tonnes per annum of LNG to India.
“The deal, valued at $7 billion to $9 billion (AED 25.7 billion to AED 33 billion) over its 14-year term, marks a major step forward in the partnership between the two industry leaders,” ADNOC Gas said in a news release. published on July 18, noting that IOCL is “India’s largest integrated and diversified energy company”.
It has also signed a three-year agreement to supply LNG to TotalEnergies SE from 2023. The pact with TotalEnergies Gas and Power Ltd. amounts to $1-1.2 billion, the company announced on May 1.
In February, a month after going live, Adnoc Gas said it had delivered the first LNG from the Middle East to Germany.
“Produced by ADNOC Gas at Das Island, Abu Dhabi, the shipment of 137,000 cubic meters of LNG is the start-up cargo for the new floating LNG terminal at Brunsbuettel and the first LNG cargo to be shipped to Germany since of the Middle East”. Adnoc Gas said on February 15.
Alebri said of the milestone in Germany: “Global demand for energy is increasing and as we take advantage of the strong economic, energy security and climate action links between our two nations, ADNOC Gas is ready to deliver further shipments of this key transition fuel to our partner, RWE and German industry.”
According to Adnoc Gas, the supply contract between state-owned Adnoc Gas and RWE Aktiengesellschaft is part of the UAE-Germany Energy Industry and Security Accelerator signed in September 2022.
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