A unit of UAE’s Abu Dhabi National Oil Co. has signed multi-year LNG supply agreements with Total and Vitol.
Under the first six-year deal, ADNOC LNG, a joint venture in which the UAE giant has a 70% stake, will supply 1.8 mtpa of post-2022 LNG volumes to Swiss-based trader Vitol.
On the other side, the deal with France-based energy giant Total is for two years. Total will get 0.75 mtpa of 2021 and 2022 LNG volumes.
“These agreements demonstrate the success of our commercial strategy in unprecedented times and confirm the market’s growing confidence in demand for natural gas,” said Fatema al-Nuaimi, ADNOC LNG CEO.
“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,” she said.
Customer diversification
ADNOC LNG produces about 6 mtpa of LNG from its facilities on Das Island off the coast of Abu Dhabi.
Prior to 2019, about 90 percent of these volumes landed in Japan, the world’s largest LNG importer.
However, since than the LNG producer has signed several deals and now supplies the fuel to a range of clients, and in more than eight countries from across Southern and Southeast Asia.
The firm added that the agreements with Vitol and Total continue the transition to a multi-customer strategy.
Besides ADNOC, the LNG producers shareholders include Mitsui & Co (15%), BP (10%), and Total (5%).
