UAE's ADNOC signs multi-year LNG supply agreements with Total, Vitol

Dubai — Abu Dhabi National Oil Co. has signed multi-year LNG supply agreements with Total and Vitol as the UAE's biggest energy producer seeks new customers for its chilled gas production.

ADNOC LNG, a joint venture in which the parent company has a 70% stake, signed a supply agreement of up to six years with Vitol for the sale of 1.8 million mt/year of post-2022 LNG cargoes, the national oil producer said in a statement Nov. 11. ADNOC LNG also secured a two-year supply deal with Total for 0.75 million mt/year for 2021 and 2022 volumes.

"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," said Fatema al-Nuaimi, ADNOC LNG CEO.

ADNOC LNG, which up until 2019 supplied 90% of its volumes to Japan, has since sought to diversify its customer base by signing multi-year agreements.

Multiple customers

The company is now supplying 90% of its LNG to a range of clients, and in more than eight countries from across Southern and Southeast Asia.

ADNOC LNG, which is the first exporter of the fuel in the Middle East, produces about 6 million mt/year from its facilities on Das Island off the coast of Abu Dhabi.

Besides ADNOC, other shareholders are Mitsui & Co (15%), BP (10%), and Total (5%).

ADNOC LNG said last year that it had signed supply agreements with units of BP and Total, leaving most of its production booked through the first quarter of 2022.