Adnoc signs LNG supply deal with Chinese energy company

Adnoc

State-owned oil major Adnoc has signed a 15-year heads of agreement with ENN LNG (Singapore) Pte, a wholly-owned subsidiary of China’s ENN Natural Gas Company, for the delivery of at least one million metric tons per annum (mmtpa) of liquefied natural gas (LNG).

The LNG will primarily be sourced from Adnoc’s low-carbon Ruwais LNG project, currently being developed in Al Ruwais Industrial City near Abu Dhabi, the company said in a statement.

The deliveries are expected to start in 2028 upon the commencement of the facility’s commercial operations.

“We are making excellent progress in delivering this strategic project as we grow our portfolio of lower-carbon energy solutions to enable the energy transition,” Rashid Al Mazrouei, senior vice president of marketing, Adnoc, said.

The Ruwais LNG project will be the first LNG export facility in the Middle East and North Africa region to run on clean power, supporting Adnoc’s goal to be net zero by 2045. On completion, it will have two 4.8 mmtpa LNG liquefaction trains with a total capacity of 9.6 mmtpa.

The LNG pact is contingent upon a final investment decision on the project, including regulatory approvals and a definitive agreement.

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

The Adnoc gas unit also signed a multi-year LNG supply agreement in October with Jera Global Markets, a trading subsidiary of Japan’s Jera Company.

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.