ADNOC Gas, a newly-listed subsidiary of energy giant Abu Dhabi National Oil Company (ADNOC), has signed a deal to supply liquefied natural gas (LNG) to Japan Petroleum Exploration (JAPEX) for five years as the two countries continue to bolster their ties in the energy field, the UAE firm announced Thursday.
The deal, which spans over five years, is estimated to have a value ranging between $450 million (AED 1.65 billion) and $550 million (AED 2 billion), ADNOC Gas said Thursday.
“The agreement reinforces ADNOC Gas’ position as a global LNG export partner of choice and highlights the company’s growing global presence, particularly in the Asian LNG market,” ADNOC Gas CEO Ahmed Alebri said in the statement.
The LNG supply deal forms part of the bilateral ties between the two countries in several fields, including energy.
Last month, Japanese Prime Minister Fumio Kishida visited the UAE, where he met with President Sheikh Mohammed bin Zayed Al Nahyan and agreed to cooperate in key sectors such as sustainability, space science, technology, the environment, renewable energy, transportation, healthcare, infrastructure, and industry.
Kishida’s visit, part of a pan-GCC trip, also resulted in 23 agreements and memoranda of understanding signed between the two countries.
The UAE is Japan’s second-largest supplier of oil. The Gulf state is also among the Asian country’s major sources of natural gas and aluminum, covering over 20% of Japan’s needs, according to Emirates News Agency (WAM).
Non-oil trade between Japan and the UAE jumped 36% from $10.9 billion (AED 39.9 billion) in 2020 to $14.7 billion (AED 54.1 billion) in 2022, WAM reported, citing data from the Federal Competitiveness and Statistics Centre (FCSC).
The UAE’s top export commodities to Japan include raw aluminum, mineral oils, centrifugal filter devices, copper, and polypropylene polymers.
While top imported goods from Japan are cars, car parts and accessories, iron, communication devices and equipment, and printing equipment.
