Adnoc, TotalEnergies Sign Strategic Partnership Agreement

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  • UAE, France seal energy partnership focusing on energy security
  • France seeking to lower dependence on Russian energy imports
  • TotalEnergies is major investor in ADNOC concessions, companies

Abu Dhabi National Oil Co. has signed a partnership agreement with France’s TotalEnergies that includes cooperation in trading, product supply and carbon capture, utilization and storage as Paris seeks to reduce dependence on Russia energy imports, reports Platts.

Under the terms of the agreement, ADNOC and TotalEnergies will explore opportunities to collaborate in areas of mutual interest including in gas growth, carbon capture utilization and storage (CCUS) and trading and product supply,” ADNOC said in a statement July 19.

ADNOC didn’t disclose further details about the agreement which was signed during a state visit to Paris by UAE President and ruler of Abu Dhabi Sheikh Mohamed bin Zayed.

Potential supply of diesel from the UAE to France

TotalEnergies said in a separate press release that the agreement included “the development of oil and gas projects in the UAE to ensure sustainable energy supply to the markets and contribute to global energy security.”

The agreement includes potential supply of diesel from the UAE to France, TotalEnergies added.

The deal follows the signing of the UAE-France Comprehensive Strategic Energy Partnership, which is focused on enhancing energy security, energy affordability and decarbonization, as well as progressive climate action ahead of COP28 that will be held in the UAE in 2023, ADNOC added.

Lower LNG imports

France’s economy minister Bruno Le Maire warned July 10 that a total halt in Russian gas supplies was now the “most probable” eventuality and called for an acceleration of efforts to counter the potential loss of Russian volumes.

Speaking during a webcast event in Aix-en-Provence, Le Maire said preparations should be made now for a complete halt in Russian gas supplies.

France is less dependent on Russian gas than other countries in the EU, relying on Moscow for less than 20% of its gas imports.

French LNG imports slumped more than 57% month on month to about 1.06 million mt in June, with all four of the country’s regasification terminals under maintenance and following a fire at Freeport LNG’s Texas facility.

About 55% of the June imports came from the US, almost 16% from Algeria and nearly 14% from Russia, according to Xplore, LNG ship and volume tracking software from S&P Global Commodity Insights.

France imported about 2.5 million mt of LNG in May, with 35% of the volumes coming from Russia, 33% from the US and around 10.6% from Algeria.

Key stakes

TotalEnergies has several stakes in key ADNOC companies and concessions.

The French energy group has a 40% stake in the Ruwais Diyab unconventional gas concession, which first produced in 2020. The joint venture, in which ADNOC has a 60% stake, aims to produce 1 Bcf/d of gas before 2030.

TotalEnergies also has a 15% interest in ADNOC Gas Processing, which produces natural gas liquids and condensate from the associated gas produced by ADNOC Onshore. It also has a 5% stake in ADNOC LNG, 20% interest in the Umm Shaif/Nasr oil field and 5% in Lower Zakum, two concessions operated by ADNOC Offshore, as well as a 10% interest in the ADNOC Onshore concession, which pumps almost half of ADNOC’s oil production.

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Source: Platts

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