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Adnoc Gas signs 5-year LNG supply pact with Japex

The Adnoc Gas LNG supply agreement with Japex is valued at between $450-$550m Adnoc Gas
The Adnoc Gas LNG supply agreement with Japex is valued at between $450-$550m

Adnoc Gas, a subsidiary of Abu Dhabi National Oil Company (Adnoc), has signed a five-year liquefied natural gas (LNG) supply agreement with Japan Petroleum Exploration Co Ltd (Japex).

The agreement is valued between $450-$550 million (AED1.65-2 billion), the company said in a filing published on the Abu Dhabi Securities Exchange on Thursday.

Ahmed Alebri, CEO of Adnoc Gas, said: “Japan is one of the UAE’s largest and most important energy partners. The agreement reinforces our position as a global LNG export partner of choice and highlights the company’s growing global presence, particularly in the Asian LNG market.”

Trade between Japan and the GCC members stood at around $80 billion in 2021, with Saudi Arabia and the UAE making up around 80 percent of the total. The relationship is growing rapidly: in 2022 Japan’s trade with the UAE and Saudi Arabia alone topped $100 billion.

The UAE has the largest number of Japanese expatriates in the Middle East at approximately 4,500 and hosts about 340 Japanese companies.

Natural gas plays a crucial role as a transitional fuel with lower carbon emissions than other fossil fuels. It also serves as an essential raw material in industrial value chains.

Earlier this month, Adnoc Gas awarded a $3.6 billion (AED13.1 billion) contract to the joint venture between Abu Dhabi-based National Petroleum Construction Company and Spain’s Tecnicas Reunidas SA to expand its gas processing infrastructure in the UAE.

The Abu Dhabi-listed company reported a net income of AED2.25 billion for the first half of 2023, down 12 percent from AED2.55 billion a year earlier.

Adnoc Gas in July signed a 14-year supply agreement with India’s state-owned energy firm Indian Oil Corporation Limited.

The deal involves the export of up to 1.2 million metric tonnes per annum of liquefied natural gas valued at $7 billion to $9 billion.