TotalEnergies subsidiary signs LNG deal with ADNOC Gas worth $1-1.2 billion.
Abu Dhabi National Oil Company’s (ADNOC) subsidiary, ADNOC Gas, has signed a liquefied natural gas (LNG) supply agreement with TotalEnergies Gas & Power Middle East, a subsidiary of TotalEnergies. The deal is worth between $1 billion and $1.2 billion and spans over a period of five years.
The agreement will see TotalEnergies supply ADNOC Gas with up to 1.5 million tons of LNG per year. This will contribute to the United Arab Emirates’ (UAE) goal of becoming a global leader in natural gas production and export.
Commenting on the deal, Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said, “Our collaboration with TotalEnergies represents a significant step forward in our efforts to secure the gas resources that are required to meet the UAE’s growing energy demand, as well as our broader strategy to create a more sustainable and resilient energy sector in the UAE.”
The agreement builds on the existing partnership between ADNOC and TotalEnergies. In 2018, the companies signed an agreement to jointly explore opportunities in LNG trading and marketing, as well as LNG value chain investment.
“This agreement is a testament to the strength of the longstanding partnership between ADNOC and TotalEnergies and reflects our commitment to working together to unlock new opportunities that support the UAE’s energy objectives,” said Arnaud Breuillac, President of Exploration and Production at TotalEnergies.
The UAE is the world’s sixth-largest oil producer and has been working to expand its natural gas capabilities in recent years. The country has significant natural gas reserves and is seeking to leverage them to diversify its economy away from a reliance on oil exports.
The ADNOC-TotalEnergies partnership is an important part of the UAE’s strategy, as it looks to expand its natural gas production and export capacity. The partnership brings together the expertise and capabilities of two leading energy companies, with a shared commitment to sustainable development and environmental stewardship.
This deal is also in line with TotalEnergies’ strategy to develop its LNG activities in the Middle East. The company has a strong presence in the region, with projects in Qatar, Oman, and the UAE.
The UAE’s energy sector is a key driver of economic growth, and the government has been working to attract foreign investment and expertise to help expand its capabilities. The ADNOC-TotalEnergies partnership is an important example of how foreign companies can work with UAE entities to achieve shared objectives and benefit from the country’s growing energy industry.
The deal is also expected to create new job opportunities in the UAE, as well as support the country’s broader economic development efforts. With the support of its partners, ADNOC is well-positioned to continue its efforts to expand its natural gas capabilities and contribute to the UAE’s long-term economic prosperity.
