China’s private energy company ENN Natural Gas Co. Ltd. (ENN NG) has signed through its subsidiary ENN LNG (Singapore) Pte. Ltd. a 15-year LNG sale and purchase agreement with ADNOC.
Under the deal, ADNOC will supply approximately one million tonnes per annum (mtpa) of LNG to ENN NG for a period of 15 years, ENN NG said on Monday.
The LNG will primarily be sourced from ADNOC’s Ruwais LNG project, and it is considered by ENN the biggest agreement by volume ever signed between a Chinese partner and the United Arab Emirates on LNG supply so far.
The deal comes amid escalating trade tensions and tariffs between the United States and China.
ENN’s press release from Monday also hinted at the global trade shifts.
“Against the backdrop of deep shifts in global gas supply dynamics and heightened price volatility, the SPA represents a major step forward in ENN NG’s strategy to enhance the resilience of its energy supply chain and diversify its global portfolio. The oil-linked supply helps balance the overall cost of structure of ENN NG’s resource portfolio,” the energy company said.
ENN believes that the signing of this deal marks a “concrete step” in its ongoing efforts to expand its resource portfolio and strengthen its capabilities in managing international energy resources.
Recently, ENN announced its plan to privatize ENN Energy through a share swap and cash offer, aiming to establish an integrated A+H share listing structure.
