ADNOC Gas to Supply LNG to JERA Global Markets
ADNOC Gas, a world-class integrated gas processing company, along with its subsidiaries on Monday said that it has signed a $450 million three-year liquefied natural gas (LNG) supply agreement with JERA Global Markets Pte. Ltd.
The agreement reaffirms ADNOC Gas’ position as a reliable global supplier of clean energy while supporting Japan’s energy requirements. The LNG will be supplied from ADNOC Gas’ Das Island liquefaction facility, which has a production capacity of approximately 6 million tons per annum (MTPA).
As the world’s third longest-operating LNG plant, Das Island has shipped over 3,500 LNG cargoes worldwide since beginning operations, ADNOC Gas said in a disclosure with Abu Dhabi Securities Exchange (ADX) this morning.
ADNOC Gas’ Das Island LNG facilities have been supplying LNG to Japanese energy companies for 48 years. This latest agreement, building upon a similar 2023 supply agreement, further cements the legacy of collaboration between the UAE and Japan, reflecting ADNOC Gas’ role as a preferred LNG supplier to key global markets.
In August last year, ADNOC signed a separate agreement with Osaka Gas, one of the largest utility companies in Japan, for the delivery of up to 0.8 million metric tonnes per annum (MMTPA) of LNG.
The LNG will be sourced from ADNOC’s lower-carbon Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi, and is expected to start commercial operations in 2028. Under the agreement, LNG cargoes will be shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. (OGEST).
Enabling Low-carbon Future
ADNOC GAS CEO Fatema Al Nuaimi said that this agreement builds on the robust UAE-Japan energy relationship and decades of collaboration between ADNOC Gas and JERA solidifying our shared commitment to ensuring energy security and enabling a lower-carbon future.
“We will continue to support Japan’s energy needs and reinforce our position as a reliable partner in the global LNG market,” she added.
JERA Global Markets Chairman and JERA Co Chief Optimization Officer Kazunori Kasai said that as a utility-backed trader, JERA Global Markets’ purpose is to provide energy security to the communities that the company serve and this supply agreement with ADNOC Gas reflects the active measures we take to ensure that our global portfolio remains diverse, flexible, and competitive.
As a lower-carbon energy source, LNG plays a critical role in global efforts to transition to cleaner energy solutions. This agreement aligns with both companies’ ambitions to advance sustainable energy practices.
JERA handles approximately 40 million tons of LNG annually, among the largest transaction volumes in the world, and has more than 10 years of experience in optimisation and trading.
The company ensures comprehensive optimisation of the huge energy flow from fuel procurement to transport, receiving, power generation, and sales while utilizing trading to achieve the most cost-efficient, flexible operation.
In Japan, JERA sells electricity and gas through long- and short-term over-the-counter trading and in trading markets. It also offers energy solutions that meet the needs of customers and contribute to the development of the energy market.
