TotalEnergies has agreed to purchase up to 1.6 million tonnes of liquefied natural gas from the gas business of Abu Dhabi National Oil Company under a five-year supply agreement, linking the French energy company to additional exports from the United Arab Emirates.
The first deliveries are expected to begin in 2026, TotalEnergies said in a statement on Tuesday. The agreement was signed at the ADIPEC energy conference in Abu Dhabi as energy companies navigate demand for natural gas alongside continuing uncertainty in global markets.
A long-term supply agreement
The deal covers LNG supplied by ADNOC Gas, the Abu Dhabi company’s gas business. Its volume is described as “up to” 1.6 million tonnes, meaning the agreement sets a maximum quantity rather than a guaranteed annual delivery figure in the details provided.
| Term | Detail |
|---|---|
| Buyer | TotalEnergies |
| Seller | ADNOC Gas |
| Maximum volume | 1.6 million tonnes of LNG |
| Contract length | Five years |
| Expected first deliveries | 2026 |
Fatema Al Nuaimi, chief executive officer of ADNOC Gas, said long-term natural-gas demand would continue to rise and that the global energy system would need more energy from a broader mix of sources. She also called for more flexibility in long-term supply contracts as market conditions change.
“Contracts are very rigid, written with terms and conditions, and no matter how you craft them, they are not fit for the different circumstances that face us in the market,” Fatema Al Nuaimi said at ADIPEC.
Market disruption remains part of the backdrop
The agreement follows disruption linked to the Iran war, including effects on regional energy exports and maritime traffic through the Strait of Hormuz. The waterway is a major international route for energy shipments, and interruptions to traffic have affected exports from the region, according to the report.
ADNOC reported a 52% decline in second-quarter profit in August after sales were affected by the closure of the Strait of Hormuz. ADNOC Gas reported second-quarter profit of USD 665 million, down from USD 1.39 billion in the same period a year earlier. The result nevertheless exceeded the company’s guidance range of USD 400 million to USD 600 million.
- The TotalEnergies agreement runs for five years.
- Deliveries are expected to start in 2026.
- ADNOC Gas reported lower second-quarter profit amid disruption affecting regional exports.
ADNOC Gas’ comments highlight the tension between the stability offered by long-term LNG contracts and the need to adjust supply arrangements when shipping routes, demand and geopolitical conditions shift. The agreement gives TotalEnergies a defined relationship with a major UAE gas supplier while ADNOC Gas expands its commercial ties with an international energy company.
