ADNOC Gas signs five-year LNG supply deal with TotalEnergies for up to 1.6 million tonnesAnalysis

ADNOC Gas and its subsidiaries have agreed to supply TotalEnergies with up to 1.6 million tonnes of LNG over five years. The announcement comes as ADNOC advances its newly launched LNG marketing and trading platform.

What was signed

The agreement runs five years and covers up to 1.6 million tonnes of LNG. ADNOC describes it as built on a long-standing partnership between ADNOC Gas and TotalEnergies. TotalEnergies is also a shareholder and strategic partner of ADNOC Gas.

Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said global demand for LNG continues to grow and that ADNOC Gas is well positioned to capture that opportunity. Stéphane Michel, President Gas, Renewables & Power at TotalEnergies, called the signing "another important milestone" in the partnership. He said the location between Europe and Asia will let TotalEnergies confirm its position as one of the main LNG portfolio suppliers.

The platform behind it

The agreement comes as ADNOC advances its newly launched global LNG marketing and trading platform. The platform combines the LNG marketing activities of ADNOC Gas and XRG with the trading capabilities of ADNOC Trading. ADNOC says it targets 47 million tonnes per annum of marketable LNG beyond 2030 and expects it to rank among the world's leading LNG marketing and trading organizations.

For ADNOC Gas, the platform widens access to a broader and more diversified LNG portfolio. ADNOC says that allows more flexible and customer-focused supply solutions.

Ruwais LNG

ADNOC points to the future integration of Ruwais LNG, which it expects to increase LNG production capacity significantly. It says that leaves ADNOC Gas well placed to meet growing global demand. The company continues to expand its LNG business and its presence in global markets.

The sale is small against a 47 mtpa target, and a cap of 1.6 million tonnes over five years is a modest annual volume. The buyer is also a shareholder in the seller. We previously reported: ADNOC, XRG and SEFE sign MOU to deepen gas and LNG ties with Germany. More on the sector sits in our Midstream & LNG coverage.