Abu Dhabi National Oil Company (ADNOC) has signed a deal in principle to extend a gas supply deal with its liquefied natural gas (LNG) unit and joint venture partners including Mistui, BP and Total to 2040.
The agreement comes as an existing deal was due to expire on March 31 next year.
ADNOC said its LNG subsidiary had signed seven terms contracts to supply more than more than 4.2 million tons per annum (mmtpa) of LNG based on the agreement.
The contracts, which begin in April, include LNG buyers, such as Japan’s JERA Co. The firm said in August it would purchase eight ADNOC cargoes per year for three years.
Discussions with other potential customers are continuing “to capitalise on the forecasted mid- to long-term demand for energy”.
ADNOC last week announced a new gas strategy with the aim of making the country an exporter. This included potential discoveries of 15 trillion standard cubic feet of gas and plans to explore opportunities in LNG, gas-to-chemicals and trading.
Earlier this week, the Abu Dhabi state oil company also awarded France’s Total 40 per cent of its Ruwais Diyab Unconventional Gas Concession.
ADNOC said LNG was the fastest growing hydrocarbon, with a growth rate of 4 per cent per year and demand expected to exceed 500 million tonnes annually by 2035 from 300 million in 2017.