ADNOC LNG, an Abu Dhabi National Oil Company (ADNOC) operating company, has concluded LNG supply agreements with BP and Total.
Under the agreement, BP and Total have effectively booked out the majority of ADNOC’s LNG production through the first quarter of 2022.
With the transactions, ADNOC LNG has continued to expand its footprint into new regions and markets, the company said in its statement on Tuesday.
The agreements are milestones in ADNOC LNG’s transition to a multi-customer marketing strategy that began just eight months ago in April 2019. Since then,
ADNOC said it has shifted from supplying 90 percent of its LNG molecules to a single utility customer in Japan, which remains an important customer for the company, to supplying 90 percent of its LNG molecules to a range of clients and receiving terminals in more than eight countries across southern and southeast Asia including India, China, South Korea and Taiwan.
According to industry analysts, LNG is the fastest-growing hydrocarbon with a growth rate close to 4 percent per annum. Global LNG demand is expected to exceed 600 million tons per annum by 2035, up from nearly 300 million tons per annum in 2017.
ADNOC LNG produces about 6 million tons per annum (mtpa) of LNG from its facilities on Das Island off the coast of Abu Dhabi.
ADNOC LNG is majority-owned by ADNOC, which has a 70 percent share of the company. Additional shareholders are Mitsui & Co (15 percent), BP (10 percent), and Total (5 percent).