Sewing new deals with companies across the world, ADNOC Gas, a world-class integrated gas processing company in Abu Dhabi, on Thursday announced a five-year liquefied natural gas (LNG) supply agreement with Japan Petroleum Exploration Co., Ltd. (JAPEX), the Japan-based energy company.
The agreement, valued between $450 million and $550 million, builds on the long-standing bilateral relationship between the UAE and Japan and ADNOC’s track record of fostering mutually beneficial strategic partnerships with Japanese energy companies.
Ahmed Alebri, Chief Executive Officer of ADNOC Gas, said that Japan is one of the UAE’s largest and most important energy partners and we are pleased to strengthen this relationship through this LNG supply agreement with JAPEX.
“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,” Al Aberi added.
Natural gas plays a crucial role as a transitional fuel with lower carbon emissions compared to other fossil fuels. It also serves as an important raw material in industrial value chains.
ADNOC Gas continues to leverage opportunities arising from ADNOC’s integrated gas masterplan which links every part of the gas value chain in the UAE, ensuring a sustainable and economic supply of natural gas to meet local and international demand.
ADNOC Gas and IOC
Less than a month ago, ADNOC Gas signed a $7-9 billion deal with Indian Oil Corporation (IOC) to supply liquefied natural gas (LNG) for 14 years beginning 2026.
ADNOC Gas said the agreement with IOC for the export of up to 1.2 million tonne per annum (MMTPA) of LNG signifies a major step forward in the partnership between the two industry leaders.
“The landmark deal with IOC marks another significant milestone for ADNOC Gas as it expands its global reach, reinforcing its position as a global LNG export partner of choice, and reaffirming IOC as its key strategic partner in the LNG market,” ADNOC Gas added.
Long Term LNG contracts play an important role in balancing out the inherent volatility of spot LNG market and thus make it an affordable and reliable LNG supply. These agreements would not only diversify the supply source of LNG for IOC but also would help in meeting the growing demand for cleaner and more sustainable fuel sources, according to a report from Press Trust of India (PTI).
LNG is a natural gas that has been cooled to minus 162 degrees Celsius, changing it from a gas into a liquid that is 1/600th of its original volume. This allows it to be shipped in specially designed LNG vessels, the PTI report added.
The UAE also delivered its first LNG shipment to Germany in February this year as the European nations are looking to reduce their dependence on Russia’s LNG supply after the latter invaded Ukraine in February 2022.