UAE's Adnoc announces 5-year LNG supply deal with French giant

The UAE's ADNOC Gas has signed a five-year liquefied natural gas (LNG) supply agreement with French energy company TotalEnergies, strengthening energy cooperation between the two companies.

Under the agreement, ADNOC Gas will supply up to 1.6 million tonnes of LNG to TotalEnergies. The French energy company expects the first deliveries to arrive in 2026.

The agreement comes at a time when global demand for liquefied natural gas continues to grow, particularly as European countries prepare for the winter season.

ADNOC Gas Aims to Expand Its Position in the Global LNG Market

ADNOC Gas said the agreement reflects its efforts to strengthen its position in the international LNG market and meet growing global energy demand.

Fatema Al Nuaimi, CEO of ADNOC Gas, said global demand for LNG continues to increase and that the company is well positioned to benefit from this opportunity.

The five-year agreement also highlights the UAE's growing role in supporting international energy supply through long-term partnerships.

France's TotalEnergies confirmed that it expects the first LNG deliveries under the agreement to begin this year.

The partnership will provide the company with an additional source of natural gas supply as European countries look to secure sufficient energy resources ahead of winter.

The agreement is expected to support energy supply requirements while strengthening cooperation between UAE and French energy companies.

Europe Faces Low Natural Gas Storage Levels Ahead of Winter

The agreement comes as Europe faces concerns over its natural gas reserves ahead of the winter season.

The International Energy Agency (IEA) warned that Europe's natural gas storage levels were at their lowest for this time of year since 2013.

According to the IEA, European gas storage facilities were approximately 75 per cent full at the end of October. This was below the European Union's minimum target of 80 per cent.

The storage level represents the lowest recorded figure for this period in more than a decade.

With global LNG demand increasing and Europe facing pressure to maintain sufficient gas reserves, long-term supply agreements are becoming increasingly important.

ADNOC Gas's agreement with TotalEnergies strengthens its international supply partnerships and supports its ambitions to expand its presence in the global energy market.

The deal also comes at a significant time for Europe's energy sector as countries work to maintain reliable natural gas supplies during the colder months.