SEATTLE (Oil Monster): ADNOC Gas has signed a five-year liquefied natural gas supply agreement with TotalEnergies covering up to 1.6 million tonnes of LNG, expanding the companies' long-standing commercial relationship.
The agreement will provide TotalEnergies with additional LNG supply for its global portfolio and builds on the companies' existing commercial relationship.
TotalEnergies said the UAE's location between European and Asian markets provides flexibility in supplying customers across major LNG-consuming regions.
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TotalEnergies President of Gas, Renewables and Power Stéphane Michel said the agreement marked another milestone in the companies' long-standing partnership and would support TotalEnergies' position as a major global LNG portfolio supplier.
ADNOC Gas CEO Fatema Al Nuaimi said growing global LNG demand represents an important opportunity for the company and that the agreement reflects the competitiveness and reliability of its supply offering.
The latest contract follows a three-year LNG supply agreement signed between ADNOC Gas and TotalEnergies in May 2023. That agreement was valued at approximately $1 billion to $1.2 billion under market conditions at the time and ran from 2023 through 2025.
The new five-year agreement extends a supply relationship that previously covered 2023 through 2025. It also comes as ADNOC expands its broader LNG business through the 9.6 mtpa Ruwais LNG project, in which TotalEnergies holds a 10% interest. Together, the supply contract and project investment deepen the companies' commercial ties across both LNG supply and infrastructure.
TotalEnergies holds a 10% interest in ADNOC's Ruwais LNG project in Abu Dhabi.
The project consists of two liquefaction trains with combined capacity of 9.6 million tonnes per year and is scheduled to begin commercial operations in the second half of 2028.
ADNOC Gas expects the future integration of Ruwais LNG to significantly increase its LNG production capacity as it expands its international gas business.
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Courtesy: www.egyptoil-gas.com
