ADNOC signs 15-year LNG supply deal with ENN Natural Gas
Now Reading
ADNOC signs multi-year LNG supply deal with China’s ENN Natural Gas

ADNOC signs multi-year LNG supply deal with China’s ENN Natural Gas

The deal is subject to a final investment decision including regulatory approvals and reaching a definitive sale and purchase agreement

Avatar
ADNOC signs 15-year LNG supply deal with ENN Natural Gas

UAE’s ADNOC Group has signed a 15-year liquefied natural gas (LNG) supply agreement with China’s ENN Natural Gas to deliver at least one million metric tons annually.

The LNG will primarily be sourced from the state-owned energy giant’s low-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City.

The deliveries are expected to start in 2028, upon the commencement of the facility’s commercial operations.

The deal with ENN LNG, a unit of China’s ENN Natural Gas, is subject to a final investment decision including regulatory approvals and reaching a definitive sale and purchase agreement.

“This landmark LNG agreement from our ongoing Ruwais LNG project enhances ADNOC’s position as a reliable and responsible global energy provider and creates new opportunities for value-creation across our gas value chain as natural gas demand continues to increase,” said Rashid Khalfan Al Mazrouei, ADNOC’s senior vice president of marketing.

LNG plays a crucial role as a transitional fuel, generating lower carbon emissions compared to other fossil fuels, and ADNOC is committed to ensuring reliable supply to its customers around the world.

It also serves as an important raw material in industrial value chains and its versatility allows its application across a broad range of industries, fostering economic growth.

The deal with ENN Natural Gas follows several significant international LNG sales agreements, including those with Japan Petroleum Exploration Company, TotalEnergies Gas and Power, and India Oil Corporation (IOCL).

The energy group 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 also 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 boost LNG production capacity

Meanwhile, ADNOC plans to more than double its LNG production capacity to meet rising global demand through its new project.

The company awarded $1.34bn in contracts to Petrofac Emirates and a consortium led by the National Petroleum Construction Company and C.A.T International for the expansion of its natural gas pipeline network in July.

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

“We are making excellent progress in delivering this strategic project as we grow our portfolio of lower-carbon energy solutions to enable the energy transition and we will continue to support our customers and partners on this journey,” said Al Mazrouei.

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.

Read: ADNOC Group to build new low-carbon LNG plant in Ruwais


© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top