ADNOC reported that it has signed supply agreements with units of BP plc and Total S.A.
In a written statement emailed to Rigzone, the firm noted the supply deals effectively book out the majority of its liquefied natural gas (LNG) production through the first quarter of 2021 and gives its ADNOC LNG subsidiary access to new markets.
“With these new supply agreements, ADNOC LNG has shown that it can react quickly and decisively to changing market conditions while ensuring the security and quality of delivery,” stated Fatema Al Nuaimi, CEO of ADNOC LNG. “With the support of our shareholders, we have maximized access to new markets with strong LNG growth potential.”
ADNOC owns a 70-percent stake in ADNOC LNG, which produces approximately 6 million tons per annum of LNG at its complex on Das Island 99 miles (160 kilometers) offshore Abu Dhabi. Other ADNOC LNG shareholders include Mitsui & Co. (15 percent), BP (10 percent) and Total (five percent).
“We have also successfully demonstrated our ability to shift from one customer to multiple customers while maintaining our plant’s high reliability and accepting ships from different customers at our jetty,’ continued Al Nuaimi. “We continue to deliver on time, with the right specification, quality and agreed amounts.”
ADNOC called the supply agreements with BP and Total “milestones,” applauding ADNOC LNG’s success in transitioning to a multi-customer marketing strategy implemented in April of this year.
The company pointed out the new strategy has enabled it to shift from supplying 90 percent of its LNG molecules to a single utility customer in Japan to supplying 90 percent of its LNG molecules to a range of clients and receiving terminals in more than eight countries across southern and southeast Asia. The Japanese utility “remains an important customer,” ADNOC added.
“BP is delighted to have concluded this LNG supply agreement,” Robert Lawson, BP’s chief operating officer for Gas, Integrated Supply and Trading, commented. “We are very pleased to have secured this new multi-year supply agreement.”
Laurent Chevalier, Total’s Middle East vice president for Gas, Renewables and Power, noted that his firm’s two-year supply agreement enhances its LNG portfolio and bolsters its longstanding ties with ADNOC LNG.
Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, BP CEO Bob Dudley and Total Chairman and CEO Patrick Pouyanné witnessed the signing of the LNG supply deals in Abu Dhabi.