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UAE's ADNOC Gas signs $1bln LNG deal with France's TotalEnergies

  • By Al Mayadeen English
  • Source: Agencies
  • 1 May 2023 22:03
2 Min Read

The agreement is valued at between $1 billion and $1.2 billion.

  • x
  • UAE's ADNOC Gas signs $1 bn LNG deal with TotalEnergies
    Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017 (Reuters)

The United Arab Emirates' ADNOC Gas announced on Monday a $1 billion deal to provide liquefied natural gas to France's TotalEnergies as Europe seeks to find alternatives to Russian energy sources.

In a statement, ADNOC Gas indicated that the liquefied natural gas (LNG) provided under the three-year supply deal "will be delivered to various export markets around the world."

The agreement is valued at between $1 billion and $1.2 billion, the statement highlighted, without elaborating on the quantities involved.

The deal was signed with TotalEnergies Gas and Power Limited, a subsidiary of the French multinational.

ADNOC Gas, which only became operational at the start of this year, is a subsidiary of state-owned energy giant Abu Dhabi National Oil Company (ADNOC).

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UAE sees dip in oil-related sales, signaling strains in supply chains

The UAE has emerged as a key partner for Western countries as they struggle to secure energy deals worldwide to replace imports from Russia.

In July, a deal between Total Energies and ADNOC was signed "for cooperation in the area of energy supplies" during a visit by UAE President Sheikh Mohammad bin Zayed Al Nahyan to Paris.

In September, the UAE agreed to supply natural gas and diesel to Germany as part of an "energy security" deal to replace Russian supplies.

In 2021, the UAE produced 57 billion cubic meters (bcm) of natural gas, or about 1.4% of global output, according to the BP Statistical Review of World Energy.

That same year, the Emirates exported 8.8 bcm of LNG, 1.7$ of world LNG exports, the Statistical Review said.

According to Bloomberg, the UAE is looking to boost its LNG production capacity to 15 million tonnes annually in the next fear years.

  • United Arab Emirates
  • LNG
  • Abu Dhabi
  • UAE
  • ADNOC
  • France
  • TotalEnergies

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