ADNOC LNG said today it has finalised supply agreements with subsidiaries of BP and Total, effectively booking out the majority of its LNG production through Q1 2022.
With the transactions, ADNOC LNG has continued to expand its footprint into new regions and markets.
The agreements were signed by officials from BP, Total and ADNOC LNG, an Abu Dhabi National Oil Company (ADNOC) operating company. The signing of the agreements was witnessed by His Excellency Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO; Bob Dudley, Group CEO of BP and Patrick Pouyanné, Chairman and CEO of Total.
“With these new supply agreements, ADNOC LNG has shown that it can react quickly and decisively to changing market conditions while ensuring the security and quality of delivery,’’ said ADNOC LNG CEO, Fatema Al Nuaimi. “With the support of our shareholders, we have maximized access to new markets with strong LNG growth potential.”
“We have also successfully demonstrated our ability to shift from one customer to multiple customers while maintaining our plant’s high reliability and accepting ships from different customers at our jetty. We continue to deliver on time, with the right specification, quality and agreed amounts,” she added.
Today’s agreements are milestones in ADNOC LNG’s successful transition to a multi-customer marketing strategy that began just eight months ago in April 2019. Since then, ADNOC has shifted from supplying 90 per cent of its LNG molecules to a single utility customer in Japan, which remains an important customer for ADNOC LNG, to supplying 90 per cent of its LNG molecules to a range of clients and receiving terminals in more than eight countries across southern and southeast Asia including India, China, South Korea and Taiwan.
“BP is delighted to have concluded this LNG supply agreement” said Robert Lawson, COO Gas, Integrated Supply and Trading, BP. “ADNOC LNG is a longstanding supplier to BP’s integrated supply and trading business. We are very pleased to have secured this new multi-year supply agreement.”
“The 2 year LNG Supply Agreement contributes to the growth and flexibility of Total’s LNG portfolio and strengthens our longstanding relationship with ADNOC LNG” said Laurent Chevalier, Vice President Middle East, Gas, Renewables & Power, Total.
According to industry analysts, LNG is the fastest-growing hydrocarbon with a growth rate close to 4 per cent per annum. Global LNG demand is expected to exceed 600 million tons per annum by 2035, up from nearly 300 million tons per annum in 2017.
ADNOC LNG produces about 6 million tons per annum (MMTPA) of LNG from its facilities on Das Island off the coast of Abu Dhabi and is one of the world’s most reliable producers of the supercooled, liquified gas.
ADNOC was the first LNG exporter in the Middle East and has been a reliable supplier of gas to global markets for over 40 years. Abu Dhabi’s strategic geographical location gives ADNOC advantaged access to growth markets in the Middle East and Asia, which are expected to drive significant gas demand in the near and long-term future.
ADNOC LNG is majority owned by ADNOC, which has a 70 per cent share of the company. Additional shareholders are Mitsui & Co (15%), BP (10%), and Total (5%).