BLOOMBERG/CHRISTOPHER PIKE
ADNOC LNG has inked supply agreements with subsidiaries of BP and Total, effectively booking out the majority of its LNG production through Q1 2022 and the transactions will the state-owned energy company to expand its footprint into new regions and markets.
Global LNG demand is expected to exceed 600 million tonnes per annum by 2035, up from nearly 300 million tonnes per annum in 2017.
ADNOC stated that until April 2019, the supplied 90 per cent of its LNG to Japan's Jera, its single biggest offtaker, however, the state-owned energy giant company has since diversified its customer base, supplying 90 per cent of its LNG volumes to clients in more than eight countries in South and South-East Asia, including India, China as well as South Korea and Taiwan.
Robert Lawson, BP’s COO Gas, Integrated Supply and Trading, said, “ADNOC LNG is a longstanding supplier to BP’s integrated supply and trading business and we are very pleased to have secured this new multi-year supply agreement.”
ADNOC LNG produces about six million tonnes per annum (MMTPA) of LNG. The company is majority owned by ADNOC, which holds a 70 per cent stake in the company, while other shareholders are Mitsui which holds a 15 per cent stake, BP has 10 per cent and Total with a five per cent holding.
ADNOC also signed an agreement with China’s Rongsheng to explore domestic and international growth opportunities which will support the delivery of its 2030 smart growth strategy, supporting the Abu Dhabi-based energy company’s downstream expansion plans while pursuing integrated margins for its own hydrocarbons with in-market investments.
HE Dr. Sultan Al Jaber, the UAE Minister of State and ADNOC Group CEO, said, “As we continue to successfully deliver our 2030 smart growth strategy, we are committed to working with partners who enable us to unlock and maximise value and help us secure access to new centres of global demand.”
Under the agreement, the two entities plan to explore opportunities in the sale of refined products from ADNOC to Rongsheng as well as downstream investment opportunities in both China and the UAE and the supply of LNG.
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