Adnoc Logistics & Services will explore for opportunities in LNG bunkering in the UAE and other regions
Adnoc subsidiary and Inpex sign LNG bunkering agreement
Adnoc Logistics and Services, a unit of state-owned Abu Dhabi National Oil Company, and Japan's Inpex signed an agreement for a liquefied natural gas (LNG) bunkering partnership in the UAE.
Adnoc L&S, the fully-owned subsidiary will “explore for opportunities for LNG bunkering” in the UAE as well as other regions such as Southeast Asia, along with Inpex, the companies said in a statement.
"With the support of our sister company, Adnoc LNG, as well as our partner, Inpex, we see a significant opportunity to become a major player in the LNG bunker market,” said Adnoc L&S chief executive Captain Abdulkareem Al Masabi.
Adnoc recently extended its gas supply agreement with subsidiary Adnoc LNG until 2040, replacing an earlier deal expiring in the first quarter of 2019.
The Adnoc unit signed seven agreements for the sale of over 4.2 million tonnes of LNG annually, with a growing emphasis on locking shorter-term contracts to respond to growing demand for the cleaner fuel.
With the onset of IMO regulations on sulphur in 2020, the use of LNG as a fuel on non-LNG carriers is expected to see an uptake. With the International Maritime Organisation expected to strictly enforce guidelines on bunkering fuel from 2020, restricting sulphur content to 0.5 per cent, the much cleaner LNG is being viewed as a viable alternative for non-LNG carriers.
Inpex was earlier awarded a stake in Abu Dhabi’s Lower Zakum concession, alongside French energy major Total, China National Petroleum Corporation as well as an Indian consortium.
The firm was later appointed the asset lead on the offshore field. The Japanese firm will work with its partners to ramp up production to 450,000 barrels per day from 300,000 bpd in 10 years.