ADNOC Gas signs multimillion LNG supply deal with JERA Global Markets

ADNOC Gas has signed a $500m-$700m liquefied natural gas (LNG) deal with JERA Global Markets, bringing the company’s total value of LNG supply to between $9.4bn (Dhs34.5bn) and $12bn (Dhs44bn) deals since listing in March.

The LNG supply agreement builds on the long-standing relationship between the UAE and Japan and reinforces the energy firm’s position as a global LNG export partner of choice.

“Japan is a vital energy partner for the UAE, and this agreement bolsters ADNOC’s growing track record of fostering strategic partnerships with Japanese energy companies,” the energy firm said in a statement.

Ahmed Alebri, Chief Executive Officer of ADNOC Gas, said, “This LNG supply agreement marks a significant milestone in ADNOC Gas’ long-standing strategic partnership with JERA Co., demonstrating our continuous and shared commitment for advancing sustainability in the energy sector and supporting a reliable and cleaner energy future for Japan and beyond.”

ADNOC Gas signed a five-year LNG supply agreement with Japan Petroleum Exploration Company (Japex) in August.

The deal, which is valued between $450m (Dhs1.65bn) and $550m (Dhs2bn), was signed following Japanese Prime Minister Fumio Kishida’s visit to the UAE and other GCC states in July.

Natural gas continues to play 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’ LNG deals

Meanwhile, the deal with JERA Global follows several significant international LNG sales agreements, including those with PetroChina International Company, TotalEnergies Gas and Power, and India Oil Corporation (IOCL).

The Abu Dhabi-listed firm signed a 14-year supply agreement with IOCL for the export of up to 1.2 million metric tonnes per annum of LNG per year in July.

It signed a three-year agreement with TotalEnergies in May for the export of LNG from 2023 to 2025, cementing the company’s position as a reliable global supplier of natural gas.

ADNOC Gas also secured a $450m-$550m LNG deal from PetroChina International Company (PetroChina), underscoring the company’s growing global presence, especially in the East and South Asian markets.

The company continues to capitalise on the growing global demand for natural gas, as it expands its export business, ensuring a sustainable and economic supply of natural gas to meet local and international demand.

Earlier in August, ADNOC Gas invested $3.6bn to boost its gas processing capabilities as the company looks to expand its production capacity in the UAE.

The investment is aimed at providing sufficient energy to the country’s growing industrial sector while stimulating economic growth and diversification through the In-Country Value generated by the contract.

It also awarded multi-billion contracts worth $16.9bn to develop an offshore natural gas field that will operate with net zero carbon dioxide emissions.

Read: UAE’s ADNOC awards multibillion gas expansion contracts