Adnoc signs long-term LNG supply pact with Japan’s Jera

Adnoc Gas

Adnoc Gas, a subsidiary of Abu Dhabi National Oil Company (Adnoc), has signed a multi-year liquified natural gas (LNG) supply agreement with Jera Global Markets, a trading subsidiary of Japan’s Jera Company.

The agreement is valued between $500 million and $700 million (AED1.8-2.5 billion), the company said in a statement.

Adnoc Gas CEO Ahmed Alebri said the LNG supply agreement supports a “reliable and cleaner energy future for Japan and beyond”.

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Constructed in the 1970s, Adnoc’s LNG production facilities on Das Island supplied LNG to the Tokyo Electric Power Company, one of the parent companies of Jera Company for over 40 years.

Adnoc Gas in August signed a five-year LNG supply agreement between $450-$550 million with Japan Petroleum Exploration Co Ltd (Japex).

The total value of LNG supply agreements signed by Adnoc Gas since its listing in March this year is between $9.4 billion and $12 billion.

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

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.