Gulf News : Dubai: ADNOC Gas has signed a five-year agreement to supply TotalEnergies with up to 1.6 million tonnes of liquefied natural gas (LNG). The company announced the deal on November 3 on the sidelines of ADIPEC, in Abu Dhabi.

TotalEnergies is already a shareholder and strategic partner in ADNOC Gas. Spread evenly, the volume works out to about 320,000 tonnes a year. That is roughly 5 per cent of Das Island’s 6 million tonne annual capacity.

Fatema Al Nuaimi, ADNOC Gas Chief Executive, links the contract to the strength of their LNG business. “Global demand for LNG continues to grow, and ADNOC Gas is well positioned to capture that opportunity,” she said. The deal is a reflection of “the competitiveness of our supply offering and our ability to secure long-term partnerships that support growth, enhance resilience and create lasting value for shareholders," she added.

Stéphane Michel, President Gas, Renewables & Power at TotalEnergies called the deal another milestone for the two companies. He credits ADNOC Gas’s “perfect location between Europe and Asia” for the new supply, which he says will help TotalEnergies stay among the main LNG portfolio suppliers. 

What it means for ADNOC Gas 
ADNOC has just launched a global LNG marketing and trading platform, and the TotalEnergies deal fits into it. The platform pools the LNG sales operations of ADNOC Gas and XRG with the trading desk at ADNOC Trading. For ADNOC Gas, it opens up a wider range of LNG sources beyond its own output. That gives the company more room to tailor supply to individual customers. 

ADNOC aims to market 47 million tonnes of LNG a year beyond 2030. That would place the platform among the world’s largest LNG marketing and trading operations and reinforce Abu Dhabi’s standing as an energy trading hub. 

The contract backs ADNOC Gas’s plan to grow its LNG business and expand in global markets. Ruwais LNG, once integrated, is expected to lift production capacity substantially. ADNOC Gas says that it positions it to meet rising demand and move up among the world’s top LNG suppliers.