Adnoc Gas Secures $450M LNG Supply Agreement with Japan's Jera Global Markets
Adnoc Gas Secures $450M LNG Supply Agreement with Japan's Jera Global Markets

Adnoc Gas Secures $450M LNG Supply Agreement with Japan's Jera Global Markets

  • 27-Jan-2025 4:15 PM
  • Journalist: Patrick Knight

Adnoc Gas, the state-owned energy company, has signed a significant three-year liquefied natural gas (LNG) supply agreement worth AED 1.65 billion ($450 million) with Jera Global Markets, a prominent energy trading firm from Japan. This deal underscores the long-standing energy partnership between the UAE and Japan, with LNG supplied from Adnoc Gas’s Das Island liquefaction facility.

Das Island, renowned as the world’s third-longest-operating LNG facility, has an annual production capacity of 6 million tonnes. Since commencing operations, the facility has shipped more than 3,500 LNG cargoes globally, playing a pivotal role in Adnoc Gas's ability to meet international energy demands. This agreement highlights the importance of Das Island in maintaining Adnoc Gas’s strong reputation as a reliable LNG supplier on the global stage.

Fatema Al Nuaimi, CEO of Adnoc Gas, stated that the company remains dedicated to supporting Japan’s energy needs while also advancing joint efforts toward enabling a lower-carbon future. The agreement reflects Adnoc Gas’s commitment to fostering sustainable and mutually beneficial energy partnerships. For nearly five decades, the Das Island LNG facilities have been a dependable source of LNG for Japanese energy companies, further cementing the UAE's strategic role in Japan’s energy supply chain.

This latest deal follows an earlier multi-year LNG supply agreement signed in October 2023 between Adnoc Gas and Jera Global Markets, valued between $500 million and $700 million. These agreements are a testament to the deep energy ties and trust between the two nations.

In addition to its LNG supply agreements, Adnoc Gas is making significant strides in infrastructure expansion and capacity building. In December 2023, the company awarded an engineering and design contract for its new gas processing facilities at the Bab Gas Cap (BGC) project to Worley Engineering, an Australian firm. This development demonstrates Adnoc Gas’s focus on enhancing its capabilities to meet future demand.

Adnoc Gas has also announced its intention to acquire Adnoc’s 60% stake in the Ruwais LNG plant, a strategic move planned for the second half of 2028. The Ruwais facility, expected to begin production in 2028, will significantly enhance Adnoc Gas’s LNG production capacity. By 2029, Adnoc Gas aims to more than double its output, reaching an impressive 15 million tonnes per annum.

These initiatives, combined with strategic partnerships like the one with Jera Global Markets, position Adnoc Gas as a global leader in LNG production and supply. As the energy transition accelerates, the company remains focused on meeting global demand while prioritizing sustainability and advancing low-carbon energy solutions.

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