The majority of the LNG will be sourced from ADNOC’s Ruwais LNG project in Abu Dhabi. Deliveries are expected to commence in 2028, following the start of commercial operations at the plant, WAM reported
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Rashid Al Mazrouei, ADNOC’s senior vice president of marketing, stated that the agreement strengthens ADNOC’s position as a reliable global energy provider and opens up new opportunities for value creation in the gas value chain.
Read more: UAE’s ADNOC to transform atmospheric carbon into solid rock
ADNOC announced that its Ruwais plant will be the inaugural LNG project in the MENA region to operate on clean power, positioning it as one of the most environmentally friendly LNG facilities globally.
The project involves the construction of two natural gas liquefaction trains, which together will have a capacity of 9.6 million metric tonnes per year. This expansion will significantly increase ADNOC’s LNG production capacity, allowing it to meet the rising global demand for natural gas.
The agreement with ENN is contingent upon a final investment decision (FID) on the project, including regulatory approvals and the negotiation of a definitive sale and purchase agreement between the two companies, ADNOC said.
China
In efforts to support its post-pandemic recovery, China, one of the largest energy importers and the world’s second-largest economy, has been entering into numerous long-term LNG contracts. In the latest development, QatarEnergy and China Petrochemical Corporation (Sinopec) have signed a partnership agreement for the North Field South expansion project.
As part of their partnership agreement, QatarEnergy and China Petrochemical Corporation have also entered into a long-term sales and purchase agreement. Under this agreement, three million tonnes of LNG will be delivered annually from the North Field South (NFS) project to Sinopec’s terminals in China for a period of 27 years. Additionally, in a separate agreement, Adnoc Gas, which possesses significant gas reserves, has signed a deal to supply LNG valued at $450 million to $550 million to a subsidiary of PetroChina, a state-owned energy company.
Record high European LNG demand
Following Russia’s reduction in exports to Europe after its invasion of Ukraine, European LNG demand reached a record high last year. This surge in demand led to a significant increase in global gas prices, prompting developing economies like India and China to rely more on coal for electricity generation. However, the International Energy Agency (IEA) predicts that global natural gas demand will slow down in the coming years due to the declining consumption in mature markets. The agency anticipates an “accelerated” adoption of renewables and improved energy efficiency, resulting in a projected growth rate of 1.6 percent per year between 2022 and 2026, compared to an average of 2.5 percent per year between 2017 and 2021, according to the Gas 2023 Medium-Term Market Report published in October.
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