RIYADH: In a bid to ensure reliable supply to its customers, UAE’s Abu Dhabi National Oil Co. Gas has signed an agreement, valued between $450 million and $550 million, to supply liquefied natural gas to PetroChina International Co.
According to a press release, the deal will help ADNOC Gas to grow its global presence, particularly in the East and Southeast Asian markets.
“We are pleased to sign this LNG supply agreement with PCI, further strengthening our presence in one of the world’s fastest-growing gas markets,” said Ahmed Mohamed Alebri, CEO of ADNOC Gas.
He added: “China continues to be a key market for ADNOC Gas, and this agreement further reinforces our role as a major LNG supplier across East and South Asia, and beyond.”
ADNOC’s efforts to increase the supply of LNG affirms the commitment of the company to reduce emissions as natural gas plays a crucial role as a transitional fuel, generating lower-carbon generation compared to other fossil fuels, the press statement added.
Moreover, LNG serves as an important raw material in industrial value chains and it can be used across a broad range of industries, fostering economic growth.
“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.
He added: “This agreement signifies an extension of the cooperation between our two companies and reaffirms PCI’s commitment to ADNOC Gas as our global partner.”
The new agreement with PCI follows several significant international LNG sales agreements by ADNOC Gas with various companies including Japan Petroleum Exploration Co., TotalEnergies Gas and Power, and India Oil Corp.
ADNOC Gas is one of the most significant players in the energy industry globally. In March, the company reported a 32 percent increase in its 2022 core earnings on a pro forma basis to $8.7 billion, up from $6.6 billion in 2021.
The company currently supplies approximately 60 percent of the UAE’s sales gas needs and supplies end-customers in over 20 countries.
Source: Arab News