In This Article:
Abu Dhabi National Oil Company (ADNOC) has entered into long-term agreements to supply liquefied natural gas (LNG) to China's ENN Natural Gas and Zhenhua Oil.
ENN Natural Gas announced via WeChat that its 15-year contract with ADNOC is set to provide approximately one million metric tonnes (Mt) of LNG annually.
Reuters reported ENN’s statement on its official WeChat as saying: "The deal marks a key step for ENN towards enhancing a stable energy supply chain and diversifying supplies."
ENN Natural Gas, which is listed in Shanghai and holds a 34.28% stake in ENN Energy, is also looking to acquire the remaining shares of the clean energy distributor for about $7.65bn.
In a separate development, state-owned Zhenhua Oil has secured a five-year agreement with ADNOC, commencing in 2026.
The contract stipulates the delivery of up to 12 LNG cargoes per year.
According to a Chinese industry insider, the LNG pricing will be on a delivered basis to Rudong in Jiangsu province, with some shipments aimed to the Japan Korea Marker and others linked to Brent oil prices.
Zhenhua Oil, which is already collaborating with ADNOC in Abu Dhabi, is in the process of establishing its inaugural LNG terminal in Rudong, with operations expected to start in the first quarter of 2026.
ADNOC's CEO, Sultan Al Jaber, was present for the inauguration of the company's new Beijing office last Friday.
Also, this month, ADNOC Drilling secured a $1.63bn contract from ADNOC Offshore for a range of integrated drilling services over five years, targeting enhanced efficiency in offshore extended reach and maximum reservoir wells.
"ADNOC secures two LNG deals with Chinese firms" was originally created and published by Offshore Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.