ADNOC Signs Agreement with Japex to Supply LNG

ADNOC Gas, based in Abu Dhabi, announced on Aug 17 that it has signed a five-year agreement to supply liquefied natural gas (LNG) to Japan Petroleum Exploration Co (Japex).

The deal is worth between $450 million and $550 million, according to ADNOC Gas, who did not provide LNG volumes or start date for the shipments.

The agreement follows Japanese Prime Minister Fumio Kishida's July visit to the UAE and other Gulf states, which aimed to secure energy supplies for Japan, which is still heavily reliant on oil and gas imports.

According to ADNOC, Japan imports approximately 25% of its crude oil from the UAE, making Japan ADNOC's largest international importer of oil and gas products.

Japan Petroleum Exploration Company Limited is a company that specializes in hydrocarbon exploration, production, and transportation. JAPEX searches for and produces crude oil, natural gas, and liquefied natural gas reserves around the world. JAPEX has 272 million barrels of proven reserves in Japan and the rest of the world.

The Abu Dhabi National Oil Company, or ADNOC, is the UAE's state-owned oil company. It is the world's 12th-largest oil company in terms of output. As of 2021, the company's oil production capacity exceeded 4 million barrels per day, with plans to increase to 5 million barrels per day by 2030.