TotalEnergies signs a 900 million euro deal with UAE’s ADNOC

Following Russia’s illegal invasion of Ukraine in February 2022, Europe has been grappling with an unprecedented energy crisis. This has led the EU and its Member States to seek alternatives to the gas and oil provided previously by Russia. Over the past few months, several European states have turned to the Gulf States to sign ambitious energy deals.  

The latest EU member to partner with the GCC on securing energy supplies is France. On 1 May, French energy giant TotalEnergies announced it had finalised a major deal with the UAE gas and oil producer Abu Dhabi National Oil Company (ADNOC). According to the terms of the agreement, the value of which is estimated at 900 million euros, the state-owned company is to provide liquified natural gas (LNG) to TotalEnergies until the end of 2025. The gas is expected to be delivered to various export markets around the world. While the deal positions TotalEnergies as a major global partner of the Emirati corporation, it also consolidates ADNOC’s outreach as a global player in the field of energy. 

Ahmed Alebri, chief executive of ADNOC Gas, a unit of the company, said “Our new LNG supply agreement with TotalEnergies represents another significant milestone in our strategy to expand our global reach and strengthens our position as the LNG export partner of choice for leading global energy businesses. This agreement reflects our commitment to meeting the needs of our customers by offering supply security, price competitiveness, and flexibility. We look forward to continuing our long-term strategic partnership with TotalEnergies, building on our shared commitment to sustainability and the energy transition.”

The recent agreement comes in the wake of the UAE-France Comprehensive Strategic Energy Partnership (CSEP), a joint effort aimed at bolstering energy security, increasing energy affordability, and accelerating decarbonisation, along with promoting climate action in anticipation of the upcoming COP28 summit scheduled to take place in the UAE in 2023. 

Thomas Maurisse, senior vice president of LNG at TotalEnergies, explained “These additional volumes will strengthen our global LNG portfolio, our ability to supply the growing Asian markets and our ambition to accompany our customers in their energy transition.”

This is not the first time ADNOC has partnered with TotalEnergies. In July 2022, the two companies announced a strategic partnership aimed at exploring new opportunities in various areas, such as gas growth, carbon capture utilisation and storage, and trading and product supply. The ultimate goal of this partnership is to ensure a sustainable energy supply to international markets and contribute to global energy security.