According to the statement, the new gas supply agreement is scheduled to be effective commencing 1 April 2019. It will replace an existing agreement that is due to expire on 31 March 2019.
ADNOC claims that this extension follows approval by Abu Dhabi’s Supreme Petroleum Council (SPC) of the company’s new integrated gas strategy that will sustain LNG production to 2040, and enable it to seize incremental LNG and gas-to-chemicals growth opportunities when they arise from the UAE’s dynamic demand/supply position and evolving energy mix.
Abdulaziz Alhajri, Director of ADNOC’s Downstream Directorate, said: “The LNG market is projected to grow at a robust pace, fuelled by demand from Asia and developing countries who want access to a clean and affordable source of energy. With over four decades of experience of the LNG market, ADNOC LNG is well positioned to leverage this opportunity and is now modernising its commercial approach to transition from a single customer to a multi-customer business that includes a number of global utilities as well as portfolio players and traders.”
As the company aims to diversify its customer portfolio, ADNOC LNG has signed seven term contracts for the supply of 4.2 million tpy of LNG. The contracts cover the supply of LNG on a mid-term basis commencing in April next year, and have been signed with a number of international LNG buyers, including Japan’s JERA Co. In August, the Japanese company announced that it plans to buy up to 8 LNG cargoes per year for three years from ADNOC LNG, commencing in April 2019.
At the same time, discussions are still being held with a number of other potential customers, as ADNOC looks to capitalise on the forecast mid to long-term demand for energy, particularly in the growth markets of Asia.
Read the article online at: https://www.lngindustry.com/liquefaction/14112018/adnoc-to-extend-long-term-gas-supply-agreement-for-lng-production/