Adnoc Gas wins $500m Japanese gas supply deal

18 October 2023
The Adnoc Group subsidiary will supply liquefied natural gas to Jera Global Markets

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Adnoc Gas, the natural gas processing and exporting subsidiary of Abu Dhabi National Oil Company (Adnoc Group), has won an order from Jera Global Markets, a trading subsidiary of Japan’s Jera Company Incorporated, for the supply of liquefied natural gas (LNG).

The value of the multi-year LNG supply contract is between $500m and $700m, Adnoc Group said in a statement on 18 October.

The company did not specify the duration of the agreement or the volume of LNG Adnoc Gas will supply each year.

“Constructed in the 1970s, Adnoc’s LNG production facilities on Das Island supplied LNG to the Tokyo Electric Power Company (one of the parent companies of Jera Co Inc) for over 40 years. This new supply agreement with Jera Global Markets renews and further enhances the partnership,” Adnoc said.

The LNG supply agreement with Jera Global Markets is understood to be at least the fourth major order Adnoc Gas has won so far this year.

PetroChina International Company awarded Adnoc Gas a contract valued at $450m-$550m in September for LNG supply.

In August, Japan Petroleum Exploration Company (Japex) placed an order with Adnoc Gas, also worth $450m-$550m, for LNG supplies for five years.

Prior to that, Adnoc Gas won a major LNG supply order in July from Indian Oil Corporation Limited (IOCL).

The 14-year IOCL deal is estimated to be worth $7bn-$9bn. Under the terms of the agreement, Adnoc Gas will deliver up to 1.2 million tonnes a year of LNG to IOCL in India.

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