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ADNOC signs 15-year LNG supply deal with unit of China’s ENN

December 20, 2023
in News
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DUBAI, Dec 20 (Reuters) – Abu Dhabi’s state oil giant ADNOC said on Wednesday it signed a 15-year agreement to deliver at least 1 million metric tons a year of liquefied natural gas (LNG) to a subsidiary of China’s ENN Natural Gas.

“The LNG will primarily be sourced from ADNOC’s low-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi,” ADNOC said in a statement, adding that deliveries are expected in 2028 when commercial operations at Ruwais begin.

The agreement with ENN LNG, a Singapore-based subsidiary of China’s ENN Natural Gas 600803.SS, is subject to a final investment decision including regulatory approvals and reaching a definitive sale and purchase agreement.

ADNOC plans to more than double its LNG production capacity to meet rising global demand through its new project.

Demand for natural gas soared as Europe scrambled to secure supplies to replace Russian gas in the wake of Moscow’s invasion of Ukraine last year.

The Ruwais plant will have electric-powered processing facilities and run on renewable and nuclear grid power, making it one of the lowest carbon intensity LNG facilities globally, ADNOC has said. It will have two 4.8 mtpa LNG liquefaction trains when completed.

(Reporting by Yousef Saba; Editing by Janane Venkatraman )

(([email protected]; +971562166204; https://twitter.com/YousefSaba))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Nasdaq – https://www.nasdaq.com/articles/adnoc-signs-15-year-lng-supply-deal-with-unit-of-chinas-enn

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