ADNOC Gas and JERA Global Markets Sign $450 Million LNG Supply Agreement, Strengthening UAE-Japan Energy Partnership
ADNOC Gas plc, along with its subsidiaries, collectively referred to as ADNOC Gas, is one of the world’s premier integrated gas processing companies. In a significant development that bolsters its strategic position as a key player in global clean energy supply, ADNOC Gas has announced the signing of a major liquefied natural gas (LNG) supply agreement with JERA Global Markets Pte. Ltd. The deal, valued at $450 million (approximately AED 1.653 billion), is set to run for three years and aims to further solidify ADNOC Gas’ role as a reliable supplier of LNG to Japan, one of the world’s largest energy consumers.
The supply of LNG will be sourced from ADNOC Gas’ Das Island liquefaction facility, a world-class production hub located in the United Arab Emirates. The Das Island plant, which has an annual production capacity of about 6 million tons per annum (mtpa), is among the longest-operating LNG plants globally, with a legacy spanning several decades. Since its inception, it has shipped over 3,500 LNG cargoes to various parts of the world, underlining its critical role in the global energy market.
This new agreement is seen as a reaffirmation of ADNOC Gas’ commitment to supporting Japan’s energy security, a nation that has long been a key customer for UAE’s energy exports. The deal also highlights ADNOC Gas’ continuing efforts to diversify and expand its customer base while contributing to the global transition towards cleaner and more sustainable energy sources.
Strengthening UAE-Japan Energy Ties
The relationship between ADNOC Gas and Japan has been built on decades of collaboration, dating back to when ADNOC’s Das Island facility first began supplying LNG to Japanese energy companies almost 50 years ago. This partnership is seen as a model of energy cooperation, demonstrating the importance of long-term, stable energy relationships between the UAE and Japan.
Fatema Al Nuaimi, the CEO of ADNOC Gas, commented on the significance of the deal, stating, “This agreement builds on the strong UAE-Japan energy relationship and reinforces the deep collaboration between ADNOC Gas and JERA. It solidifies our shared commitment to ensuring energy security for Japan while helping pave the way for a lower-carbon future. ADNOC Gas is proud to continue supporting Japan’s energy needs, and this partnership is a testament to our reliable and sustainable approach to LNG supply.”
Japan, as a major importer of LNG, has long relied on its energy partners to meet the country’s energy demands. The strategic nature of the energy relationship between Japan and the UAE is reflected in the frequent and consistent deliveries of LNG over the years. This latest agreement underscores the growing importance of the UAE as a key energy partner in Japan’s energy portfolio.
JERA’s Commitment to Energy Security and Sustainability
JERA Global Markets, the trading arm of Japan’s utility giant JERA Co., has been instrumental in maintaining a diversified and competitive global energy portfolio. As one of the world’s largest energy trading companies, JERA Global Markets works to ensure energy security for the communities it serves while supporting the transition to cleaner energy alternatives.
Kazunori Kasai, Chief Optimization Officer of JERA Co., and Chairman of JERA Global Markets, remarked on the significance of the partnership, saying, “As a utility-backed trader, our mission at JERA Global Markets is to provide stable and reliable energy to the communities that rely on us. This agreement with ADNOC Gas strengthens our longstanding relationship and reflects the proactive steps we are taking to ensure that our global energy portfolio remains diverse, flexible, and competitive. Our partnership with ADNOC Gas plays a crucial role in maintaining energy security for Japan while advancing sustainable energy practices.”
The agreement also supports the broader global effort to reduce carbon emissions. LNG, as a lower-carbon energy source, is increasingly being seen as a critical part of the global transition to cleaner energy. Both ADNOC Gas and JERA are committed to contributing to this transition, with the partnership reflecting their shared goals of improving sustainability and energy security.
Das Island: A Pillar of Global LNG Production
ADNOC Gas’ Das Island LNG facilities have long been a cornerstone of its operations, playing a pivotal role in the supply of natural gas to international markets. Since its establishment, the Das Island facility has become one of the most important liquefaction plants in the world, and it remains operational as the third-longest-running LNG plant globally. The plant’s high production capacity and reliability have made it a trusted supplier to many of the world’s largest energy consumers.
For almost five decades, Das Island has provided LNG to Japan’s energy companies, a relationship that has deepened over the years. This latest agreement represents a continuation of that legacy and further cements ADNOC Gas’ position as a preferred LNG supplier to Japan.
The Das Island facility’s operational efficiency and capacity have allowed ADNOC Gas to meet the growing energy demands of international markets, particularly in Asia, where LNG is increasingly seen as a cleaner alternative to coal and oil. By supplying high-quality LNG from Das Island, ADNOC Gas continues to play a significant role in shaping the energy future of the region and beyond.
LNG’s Role in the Global Transition to Cleaner Energy
As the world continues to seek alternatives to fossil fuels, LNG has emerged as a key component of the global energy transition. With its lower carbon footprint compared to coal and oil, LNG offers a cleaner energy solution that can help reduce greenhouse gas emissions and improve air quality. Both ADNOC Gas and JERA recognize the critical role that LNG plays in supporting a more sustainable energy future.
The partnership between ADNOC Gas and JERA Global Markets is a testament to the role that LNG can play in driving the global shift toward cleaner energy. By providing a stable and reliable supply of LNG, ADNOC Gas helps reduce the reliance on higher-emission energy sources, thereby supporting global efforts to combat climate change.
This agreement not only strengthens the bilateral energy ties between the UAE and Japan but also sets a precedent for other countries looking to reduce their carbon emissions through the use of cleaner energy. The partnership underscores the importance of continued collaboration between global energy players to ensure a more sustainable and secure energy future for all.
A Legacy of Cooperation and Future Prospects
The signing of this new supply agreement further solidifies the long-standing collaboration between ADNOC Gas and Japan. Over the years, ADNOC Gas has consistently demonstrated its ability to meet the energy needs of its international customers, earning a reputation as a reliable and responsible energy partner.
This agreement follows a similar supply agreement signed in 2023, further deepening the relationship between the UAE and Japan in the energy sector. By providing Japan with a steady and sustainable supply of LNG, ADNOC Gas continues to reinforce its position as a key supplier in the global LNG market.
Looking ahead, ADNOC Gas remains committed to enhancing its LNG production capabilities and expanding its role in the global energy market. The company continues to invest in state-of-the-art technology and infrastructure to ensure that its LNG facilities remain at the forefront of industry standards. This will enable ADNOC Gas to meet the evolving energy needs of its customers while maintaining its commitment to sustainability and environmental responsibility.
