ADIPEC 2019 kicked off this year tackling major topics concerning oil and gas, with a focus on technology and its integration into energy production.
ADIPEC is a valuable meeting point for national and international companies to come together and sign crucial business deals and strengthen their relations for a better and more prosperous future.
ADNOC LNG, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), announced the signing of supply agreements with subsidiaries of BP and Total, under which the majority of ADNOC's LNG production has been reserved until the first quarter of the year 2022. With the signing of valuable deals, ADNOC LNG continues to expand its presence in new emerging markets and expand its geographic distribution.
The agreements were signed by BP, Total and ADNOC LNG officials in the presence of Dr Sultan bin Ahmed Al Jaber, Minister of State and CEO of Abu Dhabi National Oil Company (ADNOC) and its group of companies, Bob Dudley, CEO of BP Group, and Patrick Pouyanné, President and CEO of Total.
Fatima Al Nuaimi, Chief Executive Officer of ADNOC LNG said, “The new supply agreements signed by ADNOC LNG are a real example of the company's flexibility and ability to respond rapidly to market developments and ensure delivery quality and security.
“By supporting our partners, we have been able to enhance our product access to new markets with strong growth potential in terms of LNG demand,” Fatima Al Nuaimi added.
“These agreements confirm our ability to diversify from one business model to meet the needs of one customer to multiple customers while maintaining high reliability of our products and a willingness to receive several carriers from different customers in the port dedicated to export our products, while continuing to deliver our shipments on time and according to specifications, quality and quantities agreed upon,” Fatima Al Nuaimi said.
Today's agreements mark a new milestone in the success of ADNOC LNG to a multi-customer marketing strategy launched by the company eight months ago in April 2019. Since then ADNOC LNG has changed its business model and supplied 90% of its total natural gas production liquefied to a range of customers and destinations in more than eight countries in South Asia and Southeast Asia, including India, China, South Korea and Taiwan, having previously been headed to a single customer in Japan.
Robert Lawson, Director of Gas Operations at IST, said, “BP is delighted to sign this agreement with ADNOC LNG, one of the oldest suppliers of BP's integrated supply and trade business."
Laurent Chevalier, Vice President, Middle East Gas, Total Gas and Renewable Energy, said, “The two-year LNG supply agreement contributes to the growth and resilience of the Total LNG portfolio and further strengthens our long-term partnership with ADNOC.”
According to oil and gas industry analysts, LNG is the fastest growing hydrocarbon resource with more than 4% growth per year. Global demand for LNG is projected to exceed 600 million tonnes per year by 2035, up from 300 million tonnes per year in 2017.