ADNOC Gas signs $450mn supply deal with Japan’s JERA

United Arab Emirates’ state-run ADNOC Gas has signed a three-year LNG supply deal worth $450mn with Japan’s largest power generation firm JERA, the Gulf company announced on January 27.
ADNOC’s Das Island LNG plant, which possesses a production capacity of 6mn tonnes per year (tpy) will provide the super-chilled fuel.
It marks the latest deal between the two companies, which have had business ties for more than 40 years.
In October 2023, the two energy firms also agreed to a multiyear LNG supply agreement, valued between $500-700mn.
“As a utility-backed trader, JERA Global Markets’ purpose is to provide energy security to the communities that we serve. This supply agreement with our long-standing partner ADNOC reflects the active measures we take to ensure that our global portfolio remains diverse, flexible and competitive,” said JERA’s chief optimisation officer, Kazunori Kasai.
For ADNOC, it marks the latest deal for the Gulf major. In December, the state-owned company inked a 15-year LNG supply with German infrastructure operator EnBW Energie Baden-Württemberg to supply 600,000 tpy of the super-cooled gas.
ADNOC is in the midst of ramping up its production of LNG as it seeks to play a bigger role in the global market.
Earlier in January, ADNOC dished out a handful of new contracts for the construction of its key new project Ruwais LNG.
The facility, currently in the development phase, is slated to be completed in 2028. The export facility will boast a liquefaction capacity of 9.6mn tpy and will more than double the firm’s production capacity raising it to 15mn tpy.
Ruwais LNG is seen by many in the energy industry as a trailblazer for the LNG industry in the gulf region, as the facility will be the first LNG export terminal in the Middle East and North Africa (MENA) region to operate on clean power.
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