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Adnoc Gas PLC has signed an agreement with PetroChina International Co. Ltd. (PCI) to supply the Chinese major fossil fuel distributor with liquefied natural gas (LNG). The deal amounts to $450-550 million, the Abu Dhabi National Oil Co. (Adnoc) subsidiary said in a press release, not disclosing agreed volumes.
“This agreement underscores ADNOC Gas’ growing global presence, particularly in the East and South Asian markets”, the news release said. “Natural gas plays a crucial role as a transitional fuel, generating lower-carbon emissions compared to other fossil fuels, and ADNOC Gas is committed to ensuring reliable supply to its customers around the world”.
Adnoc Gas chief executive Ahmed Mohamed Alebri said the agreement boosts Adnoc Gas’ position ” in one of the world’s fastest growing gas markets”.
“China continues to be a key market for ADNOC Gas, and this agreement further reinforces our role as a major LNG supplier across East and South Asia, and beyond”, Alebri said in a statement.
PCI chair Wu Junli commented, “Energy is an important area of collaboration between China and the UAE. We are delighted to partner with ADNOC Gas, a company committed to providing stable and reliable energy supply with low-carbon emissions. This agreement signifies an extension of the cooperation between our two companies and reaffirms PCI’s commitment to ADNOC Gas as our global partner”.
PCI is a subsidiary of PetroChina Co. Ltd., which is under state-owned China National Petroleum Corp.
The agreement follows another one scored by Adnoc Gas from Japan Petroleum Exploration Co. Ltd. (JAPEX). The five-year LNG supply deal amounts to $450-550 million, Adnoc Gas announced August 17.
“Japan is one of the UAE’s largest and most important energy partners and we are very pleased to strengthen this relationship through this LNG supply agreement with JAPEX”, Alebri said then.
“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 said in the JAPEX deal announcement.
Adnoc Gas earlier announced a deal with state-owned Indian Oil Corp. Ltd. (IOCL) for the supply of up to 1.2 million metric tons a year of LNG to India.
“The agreement, valued in the range of $7 billion to $9 billion (AED25.7 to AED33 billion) over its 14-year term, signifies a major step forward in the partnership between the two industry leaders”, ADNOC Gas said in a news release July 18, noting IOCL is “India’s largest integrated and diversified energy company”.
It has also entered a three-year deal to supply LNG to TotalEnergies SE from 2023. The pact with TotalEnergies Gas and Power Ltd. amounts to $1-1.2 billion, as announced by the company May 1.
In February, a month after becoming operational, Adnoc Gas said it had delivered the first LNG from the Middle East to Germany.
“Produced by ADNOC Gas at Das Island, Abu Dhabi, the shipment of 137,000 cubic meters of LNG is the commissioning cargo for the new floating LNG terminal in Brunsbuettel and the first-ever LNG cargo to be shipped to Germany from the Middle East”, Adnoc Gas said February 15.
Alebri said of the milestone in Germany, “The global demand for energy is increasing and as we build on the strong economic, energy security and climate action ties between our two nations, ADNOC Gas stands ready to provide further shipments of this key transition fuel to our partner, RWE and German industry”.
The supply contract between state-held Adnoc Gas and RWE Aktiengesellschaft is part of the UAE-Germany Energy Security and Industry Accelerator signed September 2022, according to Adnoc Gas.(source: email@example.com)