Adnoc inks LNG supply deals with Vitol, Total
dubai — The UAE’s Adnoc LNG has signed supply agreements with the world’s largest independent energy trader Vitol and energy giant Total which will driving new growth opportunities for the Abu Dhabi firm.
The Abu Dhabi National Oil Company subsidiary signed up to six-year supply agreement for the sale of 1.8 million tonnes per annum (mtpa) of liquefied natural gas (LNG) post-2022 and a two-year supply contract with Total for 0.75 mtpa for 2021 and 2022.
Currently, Adnoc LNG produces about six mtpa of LNG from its facilities on Das Island off the coast of Abu Dhabi.
Estimates show that global LNG demand is projected to grow by up to five per cent 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.
“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,” said Fatema Al Nuaimi, CEO of Adnoc LNG.
“For Vitol LNG, this development strengthens our ability to ensure diverse and secure supply to our customers around the world,” said Pablo Galante Escobar, head of LNG at Vitol.
“This new supply agreement contributes to the growth and flexibility of Total’s LNG portfolio and strengthens our longstanding relationship with Adnoc LNG,” said Thomas Maurisse, senior vice-president for LNG at Total.
LNG is a fuel that can support the transition to clean energy...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 Fatema Al Nuaimi,
CEO of Adnoc LNG
First unconventional gas from UAE
In another major development, Adnoc and Total announced delivery of first unconventional gas from the UAE as Abu Dhabi energy giant targets producing one billion standard cubic feet of gas from the concession before 2030 in bid to make the UAE gas self-sufficient.
The unconventional gas was delivered from the Ruwais Diyab Unconventional Gas Concession located 200km west of Abu Dhabi city.
The first gas from Ruwais Diyab comes just two years after Adnoc and Total signed the region’s first unconventional gas concession agreement.
In addition, this initial production milestone marks the first time an unconventional gas development in the Middle East delivers gas to pipeline so early in the project timeline.
“The accelerated progress in Ruwais Diyab is a testament to the long-standing partnership between Adnoc and Total, which has enabled us to expedite the learning curve in the production of unconventional gas resources, provided cost optimisation opportunities and driven efficiencies,” said Yaser Saeed Almazrouei, executive director at Adnoc Upstream.