ABU DHABI, 5th December, 2018 – ADNOC Logistics & Services (ADNOC L&S) and INPEX CORPORATION (INPEX) have signed a framework agreement for an LNG bunkering partnership in the UAE. Under the agreement, ADNOC L&S, a wholly-owned subsidiary of the ADNOC Group, and INPEX will explore opportunities for LNG bunkering in the UAE as well as the potential to jointly expand LNG bunkering activities to cover other regions, including Southeast Asia.
The use of LNG as a fuel on non-LNG carriers is expected to grow significantly as ship owners seek new compliance solutions to meet the 2020 IMO’s global sulfur cap. The UAE is strategically located as a major bunkering hub and is a reliable producer and exporter of LNG, through ADNOC LNG.
The agreement was signed by Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, and Shigeharu Yajima, SVP Global Energy Marketing Division, INPEX.
Captain Al Masabi said, “ADNOC L&S has a long-established history in LNG shipping as well as bunkering operations. Our goal, through this partnership, is to offer safe and efficient LNG fuelling solutions to our customers. 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.”
Yajima said, “It is our great pleasure to announce that we continue to expand our excellent partnership with ADNOC, building on our long-term relationship in the upstream sector. ADNOC and INPEX share the responsibility, as global energy companies, to provide our customers with a safe and efficient fuel that is compliant to international emissions regulations.
“As outlined in VISION 2040, our long-term corporate vision, we will look to develop gas demand in Asia and other growing markets. LNG bunkering will be a key component to the creation of natural gas demand. INPEX aims to become a key player in natural gas development and supply in the Asia and Oceania region during the period until 2040.”
ADNOC and INPEX have had a strong and well-established partnership since 1973 with INPEX’s participation in the Umm Shaif and the Lower Zakum fields, within the former Abu Dhabi Marine Areas (ADMA) concession. INPEX joined in the development of three other offshore oil fields: Upper Zakum field in 1977, Umm Al Dalkh in 1978 and Satah in 1980. In February 2018, ADNOC awarded INPEX a participating interest in the Lower Zakum offshore concession, as well as a 25-year extension of the Satah and Umm Al Dalkh offshore concession.