Adnoc Gas Secures Major 5-Year LNG Supply Deal with TotalEnergies, Boosting Global Market Presence

Adnoc Gas has finalized a significant five-year agreement to provide up to 1.6 million tonnes of liquefied natural gas (LNG) to France's TotalEnergies. This strategic deal marks a key step in Adnoc Gas's expansion within the global LNG market.

The agreement builds upon an established, long-standing partnership between Adnoc Gas and TotalEnergies. It underscores the increasing global demand for LNG and reinforces confidence in Adnoc Gas's capacity to ensure reliable energy supplies, the company announced on Tuesday.

Fatema Al Nuaimi, chief executive of Adnoc Gas, stated, "Global demand for LNG continues to grow, and Adnoc Gas is well positioned to capture that opportunity." She added, "This agreement reflects the strength of our LNG business, 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."

Despite facing operational constraints, Adnoc Gas has consistently pursued its long-term growth strategy throughout the year. In August, the company awarded substantial engineering, procurement, and construction contracts totaling $8.2 billion as part of its largest-ever capital investment. These contracts are allocated for Phases 2 and 3 of the rich gas project, with $3.9 billion designated for Phase 2 and $4.3 billion for Phase 3.

This latest development significantly strengthens Adnoc Gas's commercial standing at a time when both Europe and Asia are experiencing a surge in LNG demand. Asia is projected to remain the primary destination for LNG, accounting for approximately 65 percent of global imports by 2025. Meanwhile, Europe has emerged as a major purchaser, seeking to diversify its energy sources away from Russian pipeline gas and manage its storage requirements, according to the International Energy Agency's latest gas market report.

Stephane Michel, president of Gas, Renewables and Power at TotalEnergies, commented, "Thanks to its perfect location between Europe and Asia, this new supply will enable TotalEnergies to confirm its position as one of the main LNG portfolio suppliers." TotalEnergies holds a shareholder stake in Adnoc Gas and is a partner in the Ruwais LNG project.

Adnoc Gas anticipates that the planned integration of the Ruwais LNG project will substantially increase its production capacity, aligning with its objective to become a leading global LNG supplier. The agreement with TotalEnergies coincides with Adnoc's strategic initiative to establish a new global LNG marketing and trading platform. This platform integrates the marketing operations of Adnoc Gas and its investment arm, XRG, with the trading expertise of Adnoc Trading.

The new platform aims to market 47 million tonnes per annum of marketable LNG beyond 2030, positioning it among the top global LNG marketing and trading businesses, Adnoc Gas confirmed on Tuesday. Currently, Adnoc Gas supplies about 60 percent of the UAE's domestic sales gas needs and serves end-customers in over 20 countries worldwide.