ADNOC Gas, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has signed a deal with TotalEnergies and Power Limited – a subsidiary of TotalEnergies – to supply the French energy company with liquefied natural gas (LNG) until 2025.
As WAM reported, the three-year agreement is expected to be valued between $1 billion and $1.2 billion at current prices, although the volumes involved have not been disclosed. The LNG will be delivered to various export markets worldwide, according to ADNOC.
Adnoc Gas holds rights to 95% of the UAE’s natural gas reserves, which are believed to be the world’s seventh-largest. Furthermore, the company is responsible for providing over 60% of the UAE’s gas requirements.
Commenting on the agreement, ADNOC Gas CEO Ahmed Alebri said: “Our new LNG supply agreement with TotalEnergies represents another significant milestone in our strategy to expand our global reach and strengthens our position as the LNG export partner of choice for leading global energy businesses.”
“This agreement reflects our commitment to meeting the needs of our customers by offering supply security, price competitiveness, and flexibility. We look forward to continuing our long-term strategic partnership with TotalEnergies, building on our shared commitment to sustainability and the energy transition,” Alebri added.
For his part, TotalEnergies senior vice-president LNG Thomas Maurisse said: “These additional volumes will strengthen our global LNG portfolio, our ability to supply the growing Asian markets, and our ambition to accompany our customers in their energy transition.”
Read more: QatarEnergy partners with Shell for large-scale LNG project
Greater demand
Rising European gas prices have led to a greater demand for LNG, with Europe turning to the US and Norway for supplies in the past year.
With prices still above historical averages, many analysts predict prices will continue to rise ahead of Europe’s next winter.
As part of efforts to secure more supplies, EU officials have visited gas-rich countries such as Algeria, Qatar, and the UAE.
The UAE is investing billions of dollars to triple its LNG production capacity to 15 million tons per year over the next four years.
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