ADNOC Gas, TotalEnergies Gas and Power ink 3-year LNG supply deal

ADNOC Gas has signed a three-year supply agreement with TotalEnergies Gas and Power, a subsidiary of TotalEnergies, a French multinational energy company, for the export of liquefied natural gas (LNG).

Based on the deal, through its subsidiary, ADNOC Gas will supply TotalEnergies LNG, which will be delivered to various export markets around the world.

Ahmed Alebri, chief executive officer of ADNOC Gas, said: “Our new LNG supply agreement with TotalEnergies represents another significant milestone in our strategy to expand our global reach and strengthens our position as the LNG export partner of choice for leading global energy businesses.

“This agreement reflects our commitment to meeting the needs of our customers by offering supply security, price competitiveness, and flexibility. We look forward to continuing our long-term strategic partnership with TotalEnergies, building on our shared commitment to sustainability and the energy transition.”

TotalEnergies has operated in the UAE for more than 80 years.

“We are pleased to have signed this three-year contract with our long-standing strategic partner. These additional volumes will strengthen our global LNG portfolio, our ability to supply the growing Asian markets, and our ambition to accompany our customers in their energy transition.” said Thomas Maurisse, senior vice president LNG at TotalEnergies.

The three-year contract is expected to commence in 2023 and will run through 2025.

Recent milestones for ADNOC Gas

In March, ADNOC Gas said its net profit shot up by 37 per cent to $4.9bn on a pro forma basis in 2022, driven by increasing production capacity and a favourable pricing environment.

The company’s pro forma adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2022 came in at $8.7bn, a $2.1bn or approximately 32 per cent increase, compared to $6.6bn a year earlier.

ADNOC Gas attributed its profitability to higher pro forma adjusted revenue, which came in at $24.7bn last year, up 27 per cent or $5.2bn from $19.5bn in 2021.

“The increase was driven by strong market conditions supporting an improved pricing environment and an approximate 3 per cent increase in sales volumes during the period,” ADNOC Gas said in a bourse filing.

Also in March, shares in ADNOC Gas, the gas business of ADNOC Group, also soared on its trading debut on the Abu Dhabi Securities Exchange (ADX)  after the company raised $2.5bn in what is the world’s biggest flotation this year.

ADNOC Gas’ shares shot up by more than 18 per cent to trade at $0.76 (Dhs2.82) against its initial public offering (IPO) price of Dhs2.37, which was the top end of its offer price – valuing the company at Dhs216bn.

Read: Abu Dhabi’s ADNOC Gas surges on ADX trading debut