Adnoc has signed significant liquefied natural gas (LNG) supply agreements with Chinese companies, marking a crucial step in enhancing economic ties between the UAE and China, the world’s second-largest economy. Under a 15-year contract with a subsidiary of ENN Natural Gas, Adnoc will supply up to one million tonnes of LNG annually, as reported by the state news agency Wam.

This agreement is the largest LNG supply contract established between the UAE and a Chinese partner. It was finalized during the recent visit of Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, to China. In addition to the deal with ENN Natural Gas, Adnoc announced LNG supply agreements with two other Chinese companies: CNOOC Gas and Power Group and ZhenHua Oil.

The agreements come at a time when the UAE, as the Arab world’s second-largest economy, and China are working to strengthen their economic relations. Last week, Adnoc opened a new sales and marketing office in Beijing to foster long-term business relationships with Chinese partners. Dr. Al Jaber expressed confidence that the office’s opening and the signing of the LNG supply agreements are vital steps towards enhancing cooperation with Chinese partners, stating, “these will create new opportunities to maximize benefits across various aspects and areas of the energy sector value chain.”

In 2023, Adnoc also forged strategic agreements with two Chinese energy firms to collaborate on low-carbon energy solutions. The deal with China National Offshore Oil Company aims to explore opportunities in low-carbon solutions and LNG ventures, while an agreement with China National Petroleum Corporation focuses on the broader energy value chain, including refining, marketing, and trading.

As China seeks to diversify its LNG imports, last year’s major suppliers included Australia, Qatar, and Russia, according to a recent Reuters report. Furthermore, Shell’s 2025 LNG Outlook projects a 60% increase in global demand for LNG by 2040, driven by economic growth in Asia and the need for emissions reductions in various industries. The expected consumption of LNG is set to rise from 407 million tonnes last year to between 630 million and 718 million tonnes annually by 2040, according to Shell’s findings.