Abu Dhabi signs 10-year LPG supply deal
Adnoc, the state-owne Abu Dhabi National Oil Company, has signed a 10-year agreement to sell 528,000 tonnes of lpG.
According to The National the agreement marks a shift for Adnoc to longer-term deals as the shale gas revolution creates a glut in global gas markets, with the US setting new record highs for LPG exports in January. The bulk of the US loads are heading to Asian markets including South Korea, Japan and China.
It penned the agreement with Vitol, the world’s largest independent energy trader.
Abdulla Salem Al Dhaheri, Adnoc’s sales and marketing director, said in a statement that the deal with Vitol “is a prime example of the innovative and different thinking we are bringing to our business deals”.
“It will create reliable, long-term value and maximise our gas resources to ensure the company is resilient to future fluctuations in the global energy markets,” he said.
The deal was sealed on the sidelines of International Petroleum Week in London by Mr Al Dhaheri and Russell Hardy, a member of Vitol’s executive committee. It is backdated to January 1 this year and will expire on December 31, 2026.
Hardy said that the long-term supply agreement with Adnoc, “will support our growing downstream LPG business”.