Abu Dhabi’s Adnoc signs 15-year LNG supply deal with Malaysia’s Petronas

ABU Dhabi National Oil Co (Adnoc) agreed to sell liquefied natural gas to Malaysia’s Petronas for 15 years starting 2028, expanding the Middle East company’s efforts to become a major supplier of the fuel.

The agreement for one million tonnes a year converts a preliminary deal to a definitive sales agreement, Adnoc said in a statement. Adnoc will supply the fuel primarily from an LNG export facility it’s building in Ruwais near Abu Dhabi.

The deal follows a similar accord with Germany’s SEFE last month. The United Arab Emirates, and other Middle Eastern states, are ramping up gas projects as they see the fuel as a key bridge in the transition to cleaner energy. Adnoc is building the multibillion-US dollar Ruwais LNG project and has taken stakes in export facilities in the US and Africa. Qatar is in the middle of its own massive LNG expansion.

Earlier this year, Shell, TotalEnergies SE, BP and Mitsui signed agreements to take a 10 per cent stake each in the Ruwais LNG plant. Adnoc will eventually transfer its 60 per cent stake in the project to its unit Adnoc Gas.

The 4.8 million-tonne-a-year Ruwais project will more than double Adnoc Gas’s existing operated LNG production capacity to around 15 million tonnes annually, according to the statement. BLOOMBERG