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ADNOC Gas, the natural gas arm of Abu Dhabi’s state energy group, has signed an agreement with Japan Petroleum Exploration (Japex) to supply liquefied natural gas (LNG) for five years.
The LNG supply deal is valued between $450 million and $550 million and “builds on the long-standing bilateral relationship between the UAE and Japan and ADNOC’s track record of fostering mutually beneficial strategic partnerships with Japanese energy companies,” Emirates News Agency quoted ADNOC Gas as saying.
Japan, heavily dependent on energy imports, is looking to boost its energy security and lower import bills amid volatile energy commodity prices and altered energy flows following the Russian invasion of Ukraine.
Last month, Japanese Prime Minister Fumio Kishida visited the United Arab Emirates (UAE) during a trip in several Arab Gulf states to discuss energy and trade relations.
ADNOC and ADNOC Gas, on the other hand, are looking to expand their international presence and have signed several major deals abroad in recent weeks.
ADNOC Gas signed in July a long-term agreement to supply LNG to Indian Oil Corporation, in a deal worth between $7 billion and $9 billion.
Under the terms of the agreement, ADNOC Gas, the integrated gas unit of Abu Dhabi National Oil Company (ADNOC), will export up to 1.2 million metric tonnes per annum (mmtpa) of LNG to Indian Oil over a period of 14 years, the Abu Dhabi company said in a statement.
ADNOC Gas, which supplies around 60% of the UAE’s sales gas needs and has access to 95% of the UAE’s huge gas reserves, looks to expand its global presence as the LNG market grows and countries look to diversify supply to boost energy security.
Earlier this month, ADNOC announced it would buy 30% of the Absheron gas field in the Caspian Sea in Azerbaijan by acquiring stakes from the current partners in the field, TotalEnergies and SOCAR. After completion of the transaction, TotalEnergies and SOCAR will each own 35% in Absheron, and ADNOC will have 30% in the gas and condensate field, where first gas was achieved last month.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.