Abu Dhabi National Oil company (Adnoc) has signed a liquefied natural gas supply agreement with Austria’s OMV, as the European nation strives to reduce its dependence on Russian volumes in the coming years.
As part of the agreement, Adnoc LNG — a subsidiary of the Abu Dhabi giant — is to supply one LNG cargo as early as the end of next year.
OMV said that the Memorandum of Understanding (MoU) between the two companies aims “to explore new partnership in deliveries for LNG” and support Austria’s energy supply security “with the aim of arranging the purchase of one LNG cargo” for the 2023-2024 winter season.
European governments are increasingly looking to Middle East nations such as Qatar and the United Arab Emirates for long-term LNG supplies to help replace Russian gas supplies.
OMV chief executive Alfred Stern said the agreement is a building block in the company’s efforts to strengthen Austria’s energy supply by diversifying its gas sources.
OMV has a significant presence in Abu Dhabi, across the hydrocarbon value chain, holding a 20% interest in the offshore concession for the Sateh Al Razboot (SARB), and Umm Lulu oilfields and a 5% stake in the Ghasha sour gas and condensate field concession.
German LNG deal
Adnoc’s agreement with OMV follows deals in September with German companies for the supply of LNG and low-carbon ammonia in the coming years.
The Abu Dhabi player plans to supply one LNG cargo for delivery in late 2022 to be used in the commissioning of German company RWE’s floating LNG import terminal at Brunsbuttel.
Adnoc has also reserved further LNG cargos exclusively for Germany next year.
Abu Dhabi is fast-tracking several gas-based developments in the emirate, including the giant Hail & Ghasha sour gas project, as it looks to increase supplies to Europe and Asia and achieve self-sufficiency.
Adnoc is also building a 10 million tonnes per annum LNG export terminal at Fujairah, with the aim of significantly increasing its regasification capability.