Adnoc Gas remains a reliable global supplier of clean energy

Adnoc Gas on Monday announced the signing of a $450 million (Dhs1.653 billion) three-year liquefied natural gas (LNG) supply agreement with JERA Global Markets.

The agreement reaffirms Adnoc Gas’ position as a reliable global supplier of clean energy while supporting Japan’s energy requirements.

The LNG will be supplied from Adnoc Gas’ Das Island liquefaction facility, which has a production capacity of approximately 6.0 million tonnes per annum (mtpa). As the world’s third longest-operating LNG plant, Das Island has shipped over 3,500 LNG cargoes worldwide since beginning operations.

Fatema Al Nuaimi, Chief Executive Officer of Adnoc Gas, said, “This agreement builds on the robust UAE-Japan energy relationship and decades of collaboration between Adnoc Gas and JERA solidifying our shared commitment to ensuring energy security and enabling a lower-carbon future.

We will continue to support Japan’s energy needs and reinforce our position as a reliable partner in the global LNG market.”

Kazunori Kasai, Chief Optimisation Officer, JERA Co, and Chairman, JERA Global Markets, said, “As a utility-backed trader, JERA Global Markets’ purpose is to provide energy security to the communities that we serve.

This supply agreement with our long-standing partner Adnoc Gas reflects the active measures we take to ensure that our global portfolio remains diverse, flexible, and competitive.”

As a lower-carbon energy source, LNG plays a critical role in global efforts to transition to cleaner energy solutions. This agreement aligns with both companies’ ambitions to advance sustainable energy practices.

Adnoc Gas’ Das Island LNG facilities have been supplying LNG to Japanese energy companies for 48 years.

This latest agreement, building upon a similar 2023 supply agreement, further cements the legacy of collaboration between the UAE and Japan, reflecting Adnoc Gas’ role as a preferred LNG supplier to key global markets.

Meanwhile in November 2024 Adnoc Gas has signed a 10-year Sales and Purchase Agreement (SPA) with GAIL India Limited, India’s largest natural gas company, to supply up to 0.52 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG), starting in 2026.

The SPA converts the previous Heads of Agreement between Adnoc Gas and GAIL, announced in January, into a definitive agreement.

The LNG will be supplied from Adnoc Gas’ Das Island liquefaction facility, which has an LNG production capacity of 6.0 mmtpa. It is the third longest established LNG plant still in production globally. Since 1977, when operations began over 3,500 LNG cargoes have been shipped to customers around the world.

Rashid Khalfan Al Mazrouei, Adnoc Gas Senior Vice President, Marketing, said: “This agreement strengthens Adnoc Gas’ role as a reliable and responsible global natural gas provider and reflects our ambition to capture future growth opportunities in gas demand. It also reinforces our position as a preferred partner for energy solutions in India.

“Global LNG demand is expected to rise by 15 per cent over the next decade, driven by industrial coal-to-gas switching in China and the increased use of LNG for power generation across Southern and Southeast Asia. We are committed to more than doubling our LNG production capacity as part of our strategy to capture a larger share of the growing global demand for lower carbon intensity products like ours.”

Sanjay Kumar, Director (Marketing) at GAIL, said: “India is witnessing a growing demand for LNG to meet its increasing natural gas demand in a diversified sectoral pattern.

GAIL plans to significantly increase its term LNG portfolio in the coming years to meet this rising demand. This SPA with Adnoc Gas is a crucial step in this direction, enabling GAIL to augment its existing LNG portfolio to better serve its diverse consumer base.”

To support its international growth ambitions, Adnoc Gas announced this week it expects to acquire Adnoc’s 60 per cent stake in the Ruwais LNG plant, at cost, in H2 2028 when first production is due.

Ruwais LNG, which includes two LNG trains, each with a production capacity of 4.8 mmtpa of LNG, will be the first LNG export facility in the Middle East and Africa region to run on clean grid electricity, making it one of the lowest-carbon intensity LNG plants in the world.

The production plant will leverage artificial intelligence and other advanced digital technologies to enhance safety, minimise emissions and drive efficiency. When it is fully operational in 2029, Adnoc Gas’ operated LNG production capacity will more than double to over 15 mmtpa.

WAM