Abu Dhabi National Oil Company has finalised two significant liquefied natural gas supply agreements with Chinese firms ENN Natural Gas and Zhenhua Oil, underscoring the strengthening energy ties between the United Arab Emirates and China.
ENN Natural Gas has entered into a 15-year contract with ADNOC to receive approximately one million metric tonnes of LNG annually. This agreement represents ADNOC’s largest LNG commitment to a Chinese buyer to date. The LNG will primarily be sourced from ADNOC’s forthcoming Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi, which is expected to commence operations in 2028. The Ruwais facility is designed to be the first in the Middle East and North Africa region powered entirely by clean energy, positioning it among the lowest carbon intensity LNG plants globally.
Concurrently, state-owned Zhenhua Oil has signed a five-year deal with ADNOC, commencing in 2026, for up to 12 LNG cargoes annually. Deliveries will be directed to Zhenhua’s new LNG terminal in Rudong, Jiangsu province, which is slated for commissioning in the first quarter of 2026. Pricing for this contract will be linked to the Japan Korea Marker and Brent crude oil benchmarks, reflecting a blend of regional and global market indices.
These agreements were formalised during the inauguration of ADNOC’s new office in Beijing, attended by ADNOC CEO Sultan Al Jaber. During the event, ADNOC announced the signing of three LNG supply deals with Chinese partners, although specific details of the third agreement remain undisclosed.
The Ruwais LNG project, a cornerstone of ADNOC’s strategy to expand its gas and LNG capacities, aims to more than double the company’s LNG production. The facility will feature two liquefaction trains, each with a capacity of 4.8 million metric tonnes per annum, culminating in a total capacity of 9.6 million metric tonnes per annum. This expansion is part of ADNOC’s broader initiative to meet the rising global demand for natural gas while adhering to environmental sustainability goals.
ENN Natural Gas, a Shanghai-listed company, currently holds a 34.28% stake in Hong Kong-listed ENN Energy and is proposing to acquire the remaining shares for approximately $7.65 billion. This move aligns with ENN’s strategy to enhance its energy supply chain stability and diversify its energy sources.
Notice an issue?
Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don’t hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.