Adnoc Chief in Japan To Seek Vital Jera Renewal

Abu Dhabi state oil company Adnoc's CEO Sultan bin Ahmad Sultan Al Jaber is in Japan in what is seen as a last-ditch effort to persuade the world's biggest LNG purchaser, Jera, to renew a major long-term contract. His meetings include one with Jera's chairman. 

NGW reported August 7 that Jera had agreed to buy a mere 0.5mn mt/yr from Adnoc LNG starting next year but had not mentioned its 4.7mn mt/yr contract with Adnoc LNG which is due to expire in 2019.

Adnoc LNG, which is 70%-owned by Adnoc, supplied about 5.6mn mt/yr LNG last year. Of that 83% was shipped to Japan, almost all to Jera.

Al Jaber, who is also a minister of state, met August 8 with Japan’s economy, trade and industry minister Hiroshige Seko as part of a series of meetings with government officials and business partners, Emirates News Agency (WAM) reported the same day; the two men discussed Adnoc’s upstream and downstream growth plans, as well as the potential for the "long-term supply of hydrocarbon products to Japan."

Among those business partners, Al Jaber is also scheduled to meet Jera chairman Hendrik Gordenker, as well as Mitsui CEO Tatsuo Yasunagahi and Inpex chairman Toshiaki Kitamura. Mitsui is a partner with a 15% stake in Adnoc LNG, so also has an interest in getting the long-term LNG contract with Jera renewed.

"For more than four decades, the UAE and Japan have enjoyed a deep rooted and successful strategic relationship, underpinned by long standing energy partnerships," WAM quoted Al Jaber saying. "Adnoc is keen to further strengthen the relationship, deepen partnerships and seize growth opportunities along the full oil and gas value chain.”