LNG bunkering tie-up for Inpex and Adnoc unit

Adnoc Logistics and Services, a unit of state-owned Abu Dhabi National Oil Company, and Japan’s Inpex signed an agreement for a liquefied natural gas bunkering partnership in the UAE.

Adnoc L&S, the fully owned subsidiary, will “explore for opportunities for LNG bunkering” in the UAE as well as other regions such as South East Asia, along with Inpex, the companies said yesterday.

“With the support of our sister company, Adnoc LNG, as well as our partner, Inpex, we see a significant opportunity to become a major player in the LNG bunker market,” said Adnoc L&S chief executive Abdulkareem Al Masabi.

Adnoc recently extended its gas supply agreement with subsidiary Adnoc LNG until 2040, replacing an earlier deal expiring in the first quarter of 2019.

The Adnoc unit signed seven agreements for the sale of over 4.2 million tonnes of LNG annually, with a growing emphasis on locking shorter-term contracts to respond to growing demand for the cleaner fuel.

With the International Maritime Organisation expected to strictly enforce guidelines on bunkering fuel from 2020, restricting sulphur content to 0.5 per cent, the cleaner LNG is being viewed as a viable alternative for non-LNG carriers.

Inpex was earlier awarded a stake in Abu Dhabi’s Lower Zakum concession, alongside French energy major Total, China National Petroleum Corporation and an Indian consortium.

The firm was later appointed asset lead on the offshore field. It will work with its partners to ramp up production to 450,000 barrels per day from 300,000 bpd over 10 years.