Deal covers up to 1.6 million tonnes as Hormuz restrictions disrupt Gulf exports and keep prices elevated.
Dubai: ADNOC Gas has signed a five-year agreement to supply TotalEnergies with up to 1.6 million tonnes of liquefied natural gas (LNG). The company announced the deal on November 3 on the sidelines of ADIPEC in Abu Dhabi.
TotalEnergies is already a shareholder and strategic partner in ADNOC Gas. The agreed volume translates to an average of around 320,000 tonnes a year, equivalent to roughly 5 per cent of Das Island’s annual LNG capacity of 6 million tonnes.
Fatema Al Nuaimi, Chief Executive of ADNOC Gas, said the agreement reflected the strength of the company’s LNG business.
“Global demand for LNG continues to grow, and ADNOC Gas is well positioned to capture that opportunity,” she said.
She added that the deal demonstrated “the competitiveness of our supply offering and our ability to secure long-term partnerships that support growth, enhance resilience and create lasting value for shareholders”.
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, described the agreement as another milestone in the partnership between the two companies. He highlighted ADNOC Gas’s “perfect location between Europe and Asia” as an advantage for the new supply arrangement, saying it would help TotalEnergies maintain its position among the leading suppliers in the global LNG market.
What it means for ADNOC Gas
The agreement comes as ADNOC has launched a global LNG marketing and trading platform, bringing together the LNG sales operations of ADNOC Gas and XRG with the trading desk at ADNOC Trading.
The platform is designed to give ADNOC Gas access to a broader range of LNG sources beyond its own production. This will provide greater flexibility to tailor supply arrangements to individual customers and respond to changing market needs.
ADNOC aims to market 47 million tonnes of LNG annually beyond 2030. This would place the platform among the world’s largest LNG marketing and trading operations while strengthening Abu Dhabi’s position as a global energy trading hub.
The agreement supports ADNOC Gas’s strategy to expand its LNG business and strengthen its presence in international markets. Once integrated, the Ruwais LNG project is expected to significantly increase production capacity. ADNOC Gas says this will help it meet growing global demand and strengthen its position among the world’s leading LNG suppliers.
