The Abu Dhabi National Oil Company (ADNOC) has signed an agreement with Vitol, the world’s largest independent energy trader, for the sale of up to 528,000 tonnes per year of LPG, to Vitol, over the next 10 years.
The long-term agreement, backdated to January 1, 2017 and which will expire on the 31st of December 2026, was signed on the side-lines of an event in London, by Abdulla Salem Al Dhaheri, ADNOC Sales and Marketing Director and Russell Hardy, a member of Vitol’s Executive Committee.
Al Dhaheri said: “ADNOC has implemented a new strategy toward its LPG sales by negotiating longer term contracts to cope with the oversupply market especially after the Shale Gas Revolution.
“This agreement, which strengthens the long-standing relationship between ADNOC and Vitol, is a prime example of the innovative and different thinking we are bringing to our business deals. It will create reliable, long-term value and maximise our gas resources to ensure the company is resilient to future fluctuations in the global energy markets.”
Hardy said: "We are delighted to be working with ADNOC on this long-term supply agreement. LPG is an important clean fuel and this will support our growing downstream LPG business.”