ADNOC Gas will supply up to 1.6 million tons of liquefied natural gas (LNG) to TotalEnergies over five years, under an agreement announced on Tuesday by the gas unit of Abu Dhabi’s state energy firm and the French oil major.
The first LNG deliveries will begin as early as this year, according to TotalEnergies. OilPrice notes that LNG flows through the Strait of Hormuz have been severely constrained for eight months and that the United Arab Emirates (UAE) remains confident that long-term global demand will stay on the upside. The Ruwais LNG project, under development in Abu Dhabi, will have 9.6 million tons per annum of capacity, most of it already committed to buyers in Asia and Europe under long-term agreements.