ADNOC LNG, an Abu Dhabi National Oil Company (ADNOC) operating company, signed liquefied natural gas (LNG) supply agreements with subsidiaries of BP and Total, according to Pipeline Oil and Gas Magazine.
Through the signing of these agreements, BP and Total subsidiaries are mainly booking out the majority of LNG production of ADNOC LNG in Q1 2020.
The agreements were signed by officials from BP, Total, and ADNOC LNG and were witnessed by Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC CEO; Bob Dudley, BP CEO; and Patrick Pouyanné, Chairman and CEO of Total.
“With these new supply agreements, ADNOC LNG has shown that it can react quickly and decisively to changing market conditions while ensuring the security and quality of delivery,’’ said ADNOC LNG CEO, Fatema Al Nuaimi.
ADNOC LNG produces around 6 million tons per annum of LNG from its facilities on Das Island off the coast of Abu Dhabi. Furthermore, it is owned by ADNOC, with a 70% share, Mitsui & Co with 15%, BP with 10%, and the remaining 5% is owned by Total.
It is worth noting that these agreements are considered as milestones in ADNOC LNG’s transition to a multi-customer marketing strategy that began in April. Since then, ADNOC LNG diversified its supply destinations through supplying 90% of its LNG molecules to more than eight countries across southern and southeast Asia, instead of supplying only a single utility customer in Japan.