UAE’s ADNOC signs $1 bn LNG deal with TotalEnergies
As Europe scrambles to find alternatives to Russian energy sources, ADNOC Gas of the United Arab Emirates announced a $1 billion deal on Monday to supply liquefied natural gas to TotalEnergies of France.
According to a business statement, the liquefied natural gas supplied as part of the three-year supply agreement “will be delivered to various export markets around the world.”
The announcement made no specific mention of the amounts involved but stated that the arrangement is valued at between $1 billion and $1.2 billion.
The agreement was struck with the French multinational’s subsidiary TotalEnergies Gas and Power Limited.
ADNOC Gas is a division of the government-owned energy behemoth Abu Dhabi National Oil Company (ADNOC), which only started operating at the beginning of this year.
As Western nations scramble to secure energy deals globally to replace imports from sanction-hit Russia, the UAE has emerged as a crucial ally.
During the visit of UAE President Sheikh Mohamed bin Zayed Al-Nahyan to Paris in July, a contract “for cooperation in the area of energy supplies” was signed between Total Energies and ADNOC.
As part of a “energy security” agreement to replace Russian supplies, the UAE committed to provide natural gas and diesel to Germany in September.
According to the BP Statistical Review of World Energy, the UAE produced 57 billion cubic meters (bcm) of natural gas in 2021, or approximately 1.4% of the world’s total output.
According to the Statistical Review, the Emirates exported 8.8 billion cubic meters of LNG in the same year, or 1.7% of global LNG exports.
According to Bloomberg, the UAE wants to increase its LNG production capacity to 15 million tons per year in the upcoming years.
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