ADNOC Consolidates LNG Sales Activities
Abu Dhabi National Oil Co PJSC (ADNOC) launched Monday a global liquefied natural gas (LNG) platform targeting 47 million metric tons per annum (MMtpa) in marketed volumes by 2035.
The "integrated commercial platform" combines the marketing activities of ADNOC Gas PLC and XRG PJSC, ADNOC's international investment arm, with the trading activities of ADNOC Trading Ltd, ADNOC said in a press release. The new platform is based in the Abu Dhabi Global Market (ADGM) financial center.
"Designed to enhance flexibility and shipping optionality, the move supports ADNOC Gas' expanding LNG portfolio, including Ruwais LNG, and XRG's international gas and infrastructure growth, while strengthening customer access globally", ADNOC said, adding the platform builds on its five decades of supplying LNG.
"[T]he platform will rank among the leading global LNG players, scaling up ADNOC and XRG's capacity to optimize a growing and diverse LNG portfolio and reinforce Abu Dhabi's position as a global energy trading center", it added.
ADNOC appointed Rashid Al Mazrouei as LNG chief marketing and origination officer.
"ADNOC Gas's existing commercial LNG arrangements remain unchanged, with the platform expected to create further upside for ADNOC Gas by supporting the optimization of its marketing activities for LNG volumes, including future Ruwais LNG volumes", it added.
"This is complemented by XRG's growing global LNG portfolio, supported by supply hubs and offices in London and Abu Dhabi.
"Long-term LNG marketing will be centralized under the combined platform, while ADNOC Trading will remain the counterparty for trading activities, with no change to existing customer interfaces. ADNOC Trading has built a significant third-party LNG portfolio within four years, and is ranked among the top global LNG financial traders, with offices in Abu Dhabi, Singapore and Geneva".
ADNOC also has its own shipping arm, ADNOC Logistics and Services PLC (ADNOC L&S). ADNOC L&S has expanded its LNG fleet to 20 tankers including 14 modern two-stroke carriers, the statement noted.
The United Arab Emirates through ADNOC aims to more than double its LNG production capacity by 2028 through the under-construction Ruwais LNG, which has a planned capacity of 9.6 MMtpa.
Meanwhile, in its latest expansion, XRG said last Thursday it had completed the purchase of an additional 7.6 percent stake in the Rio Grande LNG project in Brownsville, Texas by investing in the fourth and fifth liquefaction trains. NextDecade Corp greenlighted the two additional trains last year, increasing Rio Grande LNG's under-construction capacity by about 12 MMtpa to around 30 MMtpa.
"The transaction builds on XRG's initial investment in Rio Grande LNG, through which the company acquired an indirect 11.7 percent stake in Phase 1 of the project, including Trains 1, 2, and 3, also through GIP [BlackRock Inc's Global Infrastructure Partners]", XRG said in a statement.
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