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Adnoc unit signs $550m LNG supply pact with PetroChina

The LNG supply pact with PCI bolsters Adnoc Gas' presence in one of the world’s fastest-growing gas markets Wam
The long-term agreement is valued between $500 and $700 million

Adnoc Gas has signed an agreement worth $450-$550 million (AED1.65-AED2 billion) to supply liquefied natural gas to PetroChina International Company (PCI).

The agreement strengthens the growing global presence of Adnoc Gas, a subsidiary of Abu Dhabi National Oil Company (Adnoc), particularly in the East and South Asian markets, the UAE state-run Wam news agency reported.

Adnoc Gas CEO Ahmed Mohamed Alebri said the LNG supply agreement with PCI bolsters its presence in one of the world’s fastest-growing gas markets.

Wu Junli, chairman of PCI, stated that energy is an important area of collaboration between China and the UAE, adding that the deal signifies an extension of the cooperation between the two companies.

The new contract follows several global LNG sales agreements with Japan Petroleum Exploration Company, France’s TotalEnergies Gas and Power, and India Oil Corporation.

Adnoc Gas last month awarded a $3.6 billion contract to a 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.

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.