Adnoc Gas and Japan Petroleum Exploration Co (Japex) have agreed to a five-year supply of liquefied natural gas. Adnoc Gas is thought to hold the seventh-largest gas reserves in the world. According to a statement the business submitted to the Abu Dhabi Securities Exchange, where its shares are traded, the transaction is worth between $450 million and $550 million.
“Japan is one of the UAE’s largest and most important energy partners and we are very pleased to strengthen this relationship through this LNG supply agreement," said Ahmed Alebri, chief executive of Adnoc Gas.
"The agreement reinforces Adnoc Gas’ position as a global LNG export partner of choice and highlights the company’s growing global presence, particularly in the Asian LNG market,” he said.
The arrangement was announced by Adnoc Gas a month prior and covers a 14-year supply period with Indian Oil Corporation Limited, the largest refiner in South Asia. In accordance with the agreement, Adnoc Gas would provide IOCL with up to 1.2 million metric tonnes of LNG annually. The contract is estimated to be worth between $7 billion and $9 billion.
Since Russia's invasion of Ukraine last year, there has been more competition for LNG, and Europe has imported record amounts of the supercooled fuel to take the place of Moscow's gas supply. A rise in European demand caused the global LNG trade to reach a high of $450 billion in 2022.
More than 60% of the UAE's gas requirements are met by Adnoc Gas, which has access to 95% of the nation's natural gas reserves.
In addition, the company has inked a three-year supply contract with TotalEnergies Gas and Power, a subsidiary of TotalEnergies of France, for the export of LNG as the demand for cleaner fuel increases globally as a result of decarbonization initiatives.