Adnoc LNG has signed a six-year supply agreement with Vitol for the sale of 1.8 million tonnes per annum (mtpa) of post-2022 LNG volumes and a two-year supply agreement with Total for 0.75 mtpa of 2021 and 2022 LNG volumes.
These new agreements represent a continuation of the trusted
relationship Adnoc has built with Vitol and Total, including, most
recently, Adnoc and Vitol’s 2019 investment partnership in global
storage terminal owner and operator VTTI.
In the same vein,
Total has operated in the UAE for more than 80 years and remains one of
Adnoc’s most long-standing international partners, with a number of
ownership interests across the Group.
LNG global demand is currently projected to grow by up to 5 percent annually over the next 20 years.
Much
of this market confidence is due to LNG being produced from natural
gas, the cleanest fossil fuel, which can contribute to better air
quality and lower GHG emissions in the power sector.
This makes
LNG ideal for the transition to a low-carbon energy future, supporting a
pragmatic mix of fuels that can help countries balance energy demand
with their clean energy goals.
Speaking at the Abu Dhabi
International Petroleum Exhibition and Convention (Adipec), CEO Fatema
Al Nuaimi said: "Adnoc LNG is pleased to partner with both Vitol and
Total on these major deals as they will create reliable, long-term
benefits for our company and shareholders. Through collaboration and by
adopting a partnership approach, we are driving new growth opportunities
for Adnoc and are maximising the value of our nation’s resources."
"These
agreements demonstrate the success of our commercial strategy in
unprecedented times and confirm the market’s growing confidence in
demand for natural gas," stated Al Nuaimi.
"LNG is a fuel that
can support the transition to clean energy, especially in many Asian
markets where switching to gas will result in significant environmental
gains. As a customer-focused business, we will continue to meet the
growing demand for LNG as a key fuel in both today’s energy mix and
looking ahead to the future," she added.
Pablo Galante Escobar,
Vitol’s Head of LNG, said, "We are proud to conclude another significant
milestone with Adnoc, an important partner across key business areas.
For Vitol LNG, this most recent development strengthens our ability to
ensure a diverse and secure supply to our customers around the world."
Thomas
Maurisse, Total’s SVP LNG, said, "This new supply agreement contributes
to the growth and flexibility of Total’s LNG portfolio and strengthens
our long-standing relationship with Adnoc LNG."
As the first LNG
exporter in the Middle East, Adnoc LNG has been a reliable supplier of
gas to global markets for over four decades.
With the global oil
and gas industry facing unprecedented challenges in 2020, Adnoc LNG’s
strategy has enabled the company to respond quickly to changing market
conditions. As well as developing new markets, Adnoc LNG has rapidly
shifted from one customer to multiple customers.
The agreements with Vitol and Total continue the transition to a multi-customer strategy that began in 2019.
Since
then, Adnoc LNG has shifted from supplying 90 percent of its LNG to a
single customer in Japan, which remains an important customer, to supply
90 percent of its LNG to a range of clients, and in more than eight
countries from across Southern and Southeast Asia.
Adnoc LNG
produces about 6 mtpa 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, liquefied gas.
The company is owned by Adnoc
(70 percent), with Mitsui & Co (15 percent), BP (10 percent), and
Total (5 percent) comprising the remaining shareholders.
(TradeArabia News Service, November 16, 2020)
