TOKYO: Abu Dhabi’s ADNOC Gas has signed a five-year deal to supply liquefied natural gas to Japan Petroleum Exploration Co.
The agreement is valued between $450 million and $550 million, ADNOC Gas said, without providing LNG volumes or timing for when the shipments will start.
It follows Japanese Prime Minister Fumio Kishida’s visit to the UAE and other Gulf states in July, which focused on securing energy supplies for Japan, which remains highly dependent on oil and gas imports.
Commenting on the agreement, Ahmed Al-Ebri, CEO of ADNOC Gas, said: “Japan is one of the UAE’s largest and most important energy partners, and we are very pleased to strengthen this relationship through this LNG supply agreement with JAPEX.
“The agreement reinforces ADNOC Gas’ position as a global LNG export partner of choice and highlights the Company’s growing global presence, particularly in the Asian LNG market.”
Natural gas plays a crucial role as a transitional fuel with lower carbon emissions than other fossil fuels. It also serves as an important raw material in industrial value chains.
ADNOC has previously said that Japan imports approximately 25 percent of its crude oil from the UAE, making it the company’s largest international importer of oil and gas products.
In April, ADNOC signed two agreements with Japanese companies Kawasaki and Japan Organization for Metals and Energy Security to boost low-carbon hydrogen value to reduce carbon emissions in Japan and the UAE. Japanese Economy Minister Yasutoshi Nishimura witnessed the deal.
On LNG supply agreements, the latest agreement comes less than a month after ADNOC Gas announced a 14-year deal with Indian Oil Corp. Ltd.
That contract, worth up to $9 billion, will provide 1.2 million tons of gas to India every year.
ADNOC Gas has already achieved a significant milestone this year, as in February, it delivered the first shipment of LNG from the Middle East to Germany.
It delivered about 137,000 cubic meters of the gas to the Elbehafen floating LNG terminal in Brunsbuttel, Germany.
