ADNOC inks $450 million LNG supply deal with JERA

JERA Global Markets, a trading subsidiary of Japan’s energy major JERA, has signed a liquefied natural gas (LNG) supply agreement with UAE’s ADNOC Gas and its subsidiaries.

ADNOC Gas is slated to supply the Japanese player’s global portfolio with LNG for three years under the $450 million agreement. Natural gas will be sourced from the UAE firm’s Das Island liquefaction facility, boasting a production capacity of approximately 6 million tonnes per annum (mtpa).

“As a utility-backed trader, JERA Global Markets’ purpose is to provide energy security to the communities that we serve. This supply agreement with our long-standing partner ADNOC reflects the active measures we take to ensure that our global portfolio remains diverse, flexible and competitive,” said Kazunori Kasai, Chief Optimization Officer of JERA and Chairman of JERA Global Markets.

The deal is said to reinforce the duo’s long-standing relationship spanning more than 40 years and build on the supply agreement signed in late 2023. Furthermore, the two companies say it aligns with their shared ambition to advance sustainable energy practices.

Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said: “This agreement builds on decades of collaboration between ADNOC and JERA, solidifying our shared commitment to ensuring energy security and supporting the global transition to a lower-carbon future. By continuing to serve Japan’s growing energy needs, ADNOC Gas demonstrates its position as a reliable partner in the global LNG market.”

In November, ADNOC Gas signed a ten-year LNG sales and purchase agreement (SPA) with India’s state-owned GAIL. The gas is also set to be sourced from Das Island.

Last week, the UAE major inked a gas sales and purchase agreement (GSPA) with Emirates Water and Electricity Company (EWEC). The deal is envisaged to support the country’s transition to a lower-carbon water and electricity system.