The liquefied natural gas (LNG) unit of Abu Dhabi National Oil Company (Adnoc LNG) has signed supply deals with seven of its customers, allowing the firm to expand its total shipments to more than 4.2 million tonnes a year (t/y) from the second quarter of 2019.

Adnoc said the contracts, covering the supply of the gas on a mid-term basis starting in April next year, have been signed with “various international, well-established buyers”. The list of customers is understood to include Japan’s Jera, but the names of the other six buyers have yet to be revealed.

LNG customers

Jera announced in August its plans to purchase up to eight LNG cargoes annually from Adnoc LNG, for a period of three years, starting in April 2019.

“Meanwhile, discussions continue with other potential customers as Adnoc seeks to capitalise on the forecasted mid to long-term demand for energy, particularly in the growth markets of Asia,” the energy major said in a statement.

Adnoc LNG is looking to tap into the opportunities that projected steep rises in global LNG demand is set to present in the short-term.

LNG is the fastest-growing hydrocarbon with a growth rate of 4 per cent a year, twice that of natural gas. Global demand for the product is expected to exceed 500 million t/y by 2035, up from nearly 300 million t/y in 2017.

Boosting supply

In September, Adnoc LNG awarded an engineering, procurement and construction (EPC) contract to a joint venture of Spain’s Tecnicas Reunidas and Abu Dhabi-based Target Engineering for the second phase of its Integrated Gas Development (IGD 2).

The main scope of work on IGD 2 relates to the design, supply and construction of a gas plant on Abu Dhabi’s Das Island that will be able to process an additional 245 million standard cubic feet a day.

In a statement, Adnoc added that it will raise its natural gas supply to Adnoc LNG, allowing it to process and produce increased volumes of LNG.

Adnoc is the majority shareholder in Adnoc LNG, owning 70 per cent of the stake, with Japan’s Mitsui & Co (15 per cent), BP (10 per cent), and Total (5 per cent) being the other stakeholders.