Adnoc Gas, renowned for possessing the world’s seventh-largest natural gas reserves, has entered into a contract to provide liquefied natural gas valued at approximately $450M to $550M to a subsidiary of the state-owned energy behemoth, PetroChina.
This agreement underscores the expanding international footprint of Adnoc Gas, notably in the East and South Asian markets, as articulated in the statement released on Thursday to the Abu Dhabi Securities Exchange, where the company’s shares are listed.
“We are pleased to sign this LNG supply agreement with PCI [PetroChina International Company], further strengthening our presence in one of the world’s fastest growing gas markets,” said Ahmed Alebri, chief executive of Adnoc Gas.
Adnoc Gas: UAE Gas Reserves and Export Focus
Adnoc Gas, which has access to 95 percent of the UAE’s natural gas reserves, fulfils over 60 percent of the nation’s gas requirements. Moreover, it has been prioritizing exports in response to the heightened demand for liquefied natural gas (LNG).
Last month, Adnoc Gas inked a five-year LNG supply contract with Japan Petroleum Exploration Co (Japex), also within the range of $450M to $550M.
Back in July, this subsidiary of Adnoc announced a substantial 14-year supply agreement with Indian Oil Corporation Limited, India’s largest refiner. Under this deal, Adnoc Gas will provide up to 1.2 million tonnes of LNG annually to IOCL, an arrangement valued at an impressive $7B to $9B.
The competition for LNG has intensified since Russia’s invasion of Ukraine last year, leading Europe to import unprecedented quantities of this supercooled fuel to compensate for Moscow’s gas supplies, according to The National News.
“Energy is an important area of collaboration between China and the UAE. We are delighted to partner with Adnoc Gas, a company committed to providing stable and reliable energy supply with low-carbon emissions,” said Wu Junli, chairman of PCI.
“This agreement signifies an extension of the co-operation between our two companies and reaffirms PCI’s commitment to Adnoc Gas as our global partner.”
IEA Forecasts 6% Gas Demand Growth in China Amid Economic Recovery
The International Energy Agency anticipates that gas demand in China will experience a growth of over 6 percent this year, underpinned by a resurgence in economic activity.
China, the globe’s second-largest economy and foremost importer of crude oil, reopened its borders earlier this year following an almost three-year adherence to a strict zero-Covid policy.
In June, QatarEnergy secured its second significant natural gas supply contract with China within a year. In this 27-year agreement, the state-owned energy firm partnered with China National Petroleum Corporation to deliver four million tonnes of LNG annually.
Additionally, CNPC expressed its intention to acquire a stake in the expansion of Qatar’s North Field LNG project in the east, a project situated within one of the world’s largest gas reserves.
Last month, Adnoc Gas expressed optimism regarding sustained, long-term demand growth for natural gas, even as it reported a decline in first-half profit attributed to lower gas prices.
The company revealed a 12 percent year-on-year decrease in net profit for the first six months ending in June, amounting to $2.25B. Adnoc Gas also noted a reduction in first-half revenue from $13.28B in the previous year to $10.62B.
