Chinese Energy Firms Sign Long Term LNG Deals with ADNOC
- 21-Apr-2025 3:45 PM
- Journalist: Alexander Pushkin
China’s privately controlled ENN Natural Gas and state-run Zhenhua Oil have each signed term agreements to purchase liquefied natural gas (LNG) from the Abu Dhabi National Oil Company (ADNOC). The deals represent a notable development in China’s ongoing efforts to secure long-term, stable energy supplies from overseas partners.
ENN Natural Gas announced on its official WeChat account Saturday that it has entered into a 15-year agreement with ADNOC to receive approximately 1 million metric tons of LNG annually. The agreement is ADNOC’s largest LNG contract to date with a Chinese buyer, media reports stated. ENN said the deal represents a key step in enhancing its stable energy supply chain and diversifying its LNG sourcing strategy.
ENN Natural Gas, which is listed on the Shanghai Stock Exchange, currently holds a 34.28 percent stake in ENN Energy, a clean energy distributor listed in Hong Kong. The company has proposed to acquire the remaining stake in ENN Energy in a deal valued at around $7.65 billion, further expanding its footprint in the energy sector.
In a separate development, media reports noted that state oil and gas trading firm Zhenhua Oil signed a five-year LNG supply deal with ADNOC. This agreement is set to begin in 2026 and includes provisions for up to 12 cargoes per year, according to a Chinese industry source with direct knowledge of the agreement.
Zhenhua Oil’s contract marks its first long-term LNG deal and includes pricing based on delivery to Rudong in Jiangsu province, located in eastern China. Media reports indicate that some of the shipments will be benchmarked to the Japan Korea Marker (JKM), while others will be linked to Brent crude oil pricing.
Zhenhua, which already has an energy partnership with ADNOC in Abu Dhabi, is currently constructing its first LNG terminal in Rudong. Commissioning of the terminal is expected in the first quarter of 2026, positioning the company to play a larger role in China’s natural gas import strategy.
Media reports also stated that ADNOC CEO Sultan Al Jaber visited Beijing last week to inaugurate the company’s new office in the Chinese capital. According to a report by Dubai-based China-Arab TV and other media sources, Al Jaber attended the opening ceremony and signed three LNG supply agreements with Chinese partners during his visit, though further details were not disclosed.
These recent deals highlight the strengthening energy ties between China and the United Arab Emirates, underscoring both nations’ strategic focus on long-term cooperation in the global energy market.