Adnoc Agrees to Sell Liquefied Natural Gas to Petronas for 15 Years
Long-term Supply Deal Strengthens Adnoc’s Position as Major LNG Supplier
Abu Dhabi National Oil Co (Adnoc) has agreed to sell liquefied natural gas (LNG) to Malaysia’s Petronas for 15 years, starting from 2028. This deal marks a significant step in Adnoc’s efforts to become a major supplier of the fuel.
Definitive Sales Agreement
The agreement, which converts a preliminary deal to a definitive sales agreement, will see Adnoc supply one million tonnes of LNG per year. The fuel will primarily be sourced from Adnoc’s LNG export facility being built in Ruwais near Abu Dhabi.
Middle East’s Growing Importance in Global LNG Market
The deal follows a similar accord with Germany’s SEFE last month. The United Arab Emirates and other Middle Eastern states are ramping up gas projects, seeing the fuel as a key bridge in the transition to cleaner energy. Adnoc is building the multibillion-dollar Ruwais LNG project and has taken stakes in export facilities in the US and Africa. Qatar is also in the midst of its own massive LNG expansion.
Ruwais LNG Project
The 4.8 million-tonne-a-year Ruwais project will more than double Adnoc Gas’s existing operated LNG production capacity to around 15 million tonnes annually. The project has already attracted significant investment, with Shell, TotalEnergies SE, BP, and Mitsui signing agreements to take a 10% stake each in the plant. Adnoc will eventually transfer its 60% stake in the project to its unit Adnoc Gas.
Conclusion
This long-term supply deal cements Adnoc’s position as a major player in the global LNG market. The company’s efforts to expand its gas production and export capabilities are crucial in meeting growing global demand for the fuel.
Frequently Asked Questions
Q: What is the duration of the agreement between Adnoc and Petronas?
A: The agreement is for 15 years, starting from 2028.
Q: How much LNG will Adnoc supply to Petronas per year?
A: Adnoc will supply one million tonnes of LNG per year.
Q: Where will Adnoc source the LNG from?
A: The fuel will primarily be sourced from Adnoc’s LNG export facility being built in Ruwais near Abu Dhabi.
