China's ENN, Zhenhau Oil sign deals for ADNOC's LNG

China's ENN Natural Gas and state-owned Zhenhua Oil have each entered into term agreements to purchase LNG from Abu Dhabi National Oil Co. (ADNOC), expanding ties between Chinese buyers and Middle Eastern suppliers.

ENN Natural Gas announced on its official WeChat account on May 3 that it had secured a 15-year contract with ADNOC for an annual supply of around 1mn tonnes of LNG. The agreement marks ADNOC's largest LNG deal with a Chinese customer to date.

"The deal marks a key step for ENN towards enhancing a stable energy supply chain and diversifying supplies," the Shanghai-listed company said.

ENN, which holds a 34.3% stake in Hong Kong-listed ENN Energy, is currently seeking to acquire the remaining shares in the clean energy distributor in a transaction valued at approximately $7.65bn.

In a separate arrangement, state oil and gas trader Zhenhua Oil has signed a five-year LNG supply contract with ADNOC, beginning in 2026, a Chinese industry source told Reuters. The deal covers up to 12 cargoes annually.

The contract, Zhenhua's first long-term LNG agreement, stipulates delivery into Rudong in Jiangsu province. Pricing will be based on a mix of benchmarks, including the Japan Korea Marker (JKM) and Brent crude, the source said, requesting anonymity due to a lack of authorisation to speak publicly.

Zhenhua, which already collaborates with ADNOC in upstream ventures in Abu Dhabi, is developing its first LNG receiving terminal in Rudong. Commissioning is expected in the first quarter of 2026.

ADNOC chief executive Sultan Al Jaber attended the opening ceremony of the company’s new office in Beijing on Friday, according to the industry source and a report by China-Arab TV, a Dubai-based broadcaster. The report added that ADNOC signed three LNG supply agreements with Chinese firms during Al Jaber's visit, though it did not disclose further details.

Last month, China’s state-owned CNOOC also agreed to a five-year deal with ADNOC, beginning in 2026, for 500,000 tonnes of LNG.

These moves by Chinese buyers come after Chinese imports of US LNG were halted earlier this year after Beijing slapped taxes on the supplies in retaliation for the Trump administration’s tariffs on Chinese goods. Buyers have promptly diversified, acquiring not only more Middle Eastern cargoes but also shipments from Australia.