ADNOC Gas to Supply LNG to TotalEnergies Under Five-Year Deal

ADNOC Gas, a subsidiary of Abu Dhabi’s state energy firm, has entered into a five-year agreement with TotalEnergies, a major player in the global LNG market. Under this deal, ADNOC Gas will supply up to 1.6 million tons of LNG annually to TotalEnergies beginning this year. TotalEnergies, the world's largest LNG trader, sees this new partnership as a way to cement its position as one of the leading LNG portfolio suppliers.

Its President, Gas, Renewables & Power, Stéphane Michel, highlighted the strategic advantage of ADNOC Gas's location between Europe and Asia, which enables it to serve both continents effectively.

ADNOC Gas CEO Fatema Al Nuaimi emphasized the global surge in LNG demand and the company's readiness to capitalize on this growth opportunity. She stated that this agreement underscores the robustness of ADNOC Gas's LNG business, its competitive supply offering, and its potential to forge long-term partnerships that foster growth, bolster resilience, and create enduring value for shareholders.

Despite the recent tight LNG flows through the Strait of Hormuz, the UAE remains optimistic about the long-term prospects of global LNG demand. The UAE is actively developing the Ruwais LNG project in Abu Dhabi, which is expected to have a production capacity of 9.6 million tons per annum. Most of this production has already been contracted to international buyers in Asia and Europe through long-term agreements.

The ADNOC Gas-TotalEnergies supply agreement comes shortly after ADNOC launched a global LNG marketing and trading platform, which merges ADNOC Gas's and XRG's marketing operations with ADNOC Trading's trading capabilities. This consolidation aims to position the UAE as one of the world's leading LNG marketers and traders, with a target of 47 million mtpa of marketable LNG by 2035.