UAE’s ADNOC Gas boosts LNG exports to Japan with JERA deal

UAE’s ADNOC Gas has entered into a significant liquefied natural gas (LNG) supply agreement valued at $450 million with JERA Global Markets, a trading arm of Japan’s energy giant JERA.

Under the terms of the agreement, ADNOC Gas will provide JERA’s global portfolio with LNG for the next three years. The natural gas will be sourced from ADNOC’s Das Island liquefaction facility, which has an annual production capacity of approximately 6 million tons, Caliber.Az reports per foreign media.

Kazunori Kasai, Chief Optimization Officer of JERA and Chairman of JERA Global Markets, emphasized the strategic importance of the agreement, stating, “As a utility-backed trader, JERA Global Markets’ purpose is to provide energy security to the communities that we serve. This supply agreement with our long-standing partner ADNOC reflects the active measures we take to ensure that our global portfolio remains diverse, flexible and competitive.”

This new deal builds on a longstanding partnership between ADNOC and JERA, which spans over four decades. It also reinforces the relationship established by a previous supply agreement signed in late 2023. Both companies have stressed that the agreement aligns with their shared commitment to advancing sustainable energy practices, aiming to meet the energy demands of their respective markets while contributing to global decarbonization goals.

Fatema Al Nuaimi, CEO of ADNOC Gas, highlighted the strategic nature of the deal, stating, “This agreement builds on decades of collaboration between ADNOC and JERA, solidifying our shared commitment to ensuring energy security and supporting the global transition to a lower-carbon future. By continuing to serve Japan’s growing energy needs, ADNOC Gas demonstrates its position as a reliable partner in the global LNG market.”

The deal comes on the heels of ADNOC Gas’s November 2024 signing of a ten-year LNG sales and purchase agreement (SPA) with India’s state-owned GAIL, which also involves gas sourced from the Das Island facility. Additionally, ADNOC Gas recently entered into a gas sales and purchase agreement (GSPA) with Emirates Water and Electricity Company (EWEC), designed to support the UAE’s transition to a lower-carbon water and electricity infrastructure.

By Vafa Guliyeva