ADNOC Gas, a listed subsidiary of UAE energy giant Abu Dhabi National Oil Company (ADNOC), said Thursday it agreed to supply liquefied natural gas (LNG) to PetroChina International Company (PIC) in a deal valued at between $450 million (AED 1.65 billion) and $550 million (AED 2 billion).
The latest agreement further solidifies ADNOC Gas’ presence in East and South Asia, following similar LNG deals it secured with Japan Petroleum Exploration Co. (JAPEX) and Indian Oil Corporation Ltd. (IOCL) in recent months.
“China continues to be a key market for ADNOC Gas, and this agreement further reinforces our role as a major LNG supplier across East and South Asia, and beyond,” said ADNOC Gas CEO Ahmed Mohamed Alebri in a statement.
According to ADNOC Gas, natural gas generates lower carbon emissions compared to other fossil fuels that makes it a crucial transitional fuel.
Last month, ADNOC Gas and JAPEX signed a five-year LNG supply agreement, which was also estimated to have a value ranging between $450 million (AED 1.65 billion) and $550 million (AED 2 billion).
The deal builds on several bilateral agreements signed between the UAE and Japan, covering key sectors, during Prime Minister Fumio Kishida’s visit to the Gulf state.
Prior to that, ADNOC Gas also inked a 14-year deal worth as much as $9 billion with energy firm Indian Oil Corp. Ltd. (IOCL) in July. The agreement would see ADNOC Gas supply an LNG annual capacity of 1.2 million metric tons to the state-owned IOCL.
Outside Asia, ADNOC Gas also signed an LNG export agreement with TotalEnergies Gas and Power Ltd., spanning three years. The deal has an estimated value of $1 billion (AED 3.7 billion) to $1.2 billion (AED 4.4 billion).
The UAE and China have a long-established diplomatic relationship that’s nearing its 40th year, which the two countries agreed in August to celebrate in 2024, Emirates News Agency (WAM) reported.
The two countries also held talks about enhancing their joint investment opportunities on the sidelines of the UAE-China Economic Forum in Dubai in March this year. The two nations agreed to jointly explore new economic sectors, trade, logistical transportation, real estate, financial services, technology, and insurance activities.
