ADNOC Gas has signed a three-year liquefied natural gas (LNG) supply agreement with TotalEnergies Gas and Power, a unit of French energy giant TotalEnergies.
The agreement’s value, under current market conditions, is expected to be $1bn–1.2bn.
The three-year LNG supply agreement is anticipated to begin in 2023 and run through 2025.
ADNOC Gas CEO Ahmed Alebri said: “Our new LNG supply agreement with TotalEnergies represents another significant milestone in our strategy to expand our global reach and strengthens our position as the LNG export partner of choice for leading global energy businesses.
“This agreement reflects our commitment to meeting the needs of our customers by offering supply security, price competitiveness and flexibility. We look forward to continuing our long-term strategic partnership with TotalEnergies, building on our shared commitment to sustainability and the energy transition.”
As per the terms of the agreement, ADNOC Gas, through its subsidiary, will deliver TotalEnergies LNG, which will be delivered to various export markets around the globe.
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TotalEnergies senior vice-president LNG Thomas Maurisse said: “We are pleased to have signed this three-year contract with our long-standing strategic partner.
“These additional volumes will strengthen our global LNG portfolio, our ability to supply the growing Asian markets, and our ambition to accompany our customers in their energy transition.”
Last week, US-based Venture Global LNG signed a long-term sales and purchase agreement with Japanese energy major JERA.
The agreement concerns the sale of one million tonnes per annum of LNG from Venture Global’s CP2 LNG project for two decades. In February this year, ExxonMobil LNG Asia Pacific, an affiliate of ExxonMobil, agreed to buy LNG from Mexico Pacific’s proposed Saguaro Energia LNG export plant in Sonora state.