The Abu Dhabi National Oil Company (ADNOC) has signed an agreement for the sale of up to 528 000 tpy of LPG to Vitol over the next 10 years.
The long-term agreement, which will expire on the 31 December 2026, was signed on the side-lines of International Petroleum Week, which took place in London, UK.
Abdulla Salem Al Dhaheri, ADNOC Sales and Marketing Director, said: “ADNOC has implemented a new strategy toward its LPG sales by negotiating longer term contracts to cope with the oversupply market especially after the shale gas revolution.
“This agreement, which strengthens the long-standing relationship between ADNOC and Vitol, is a prime example of the innovative and different thinking we are bringing to our business deals. It will create reliable, long-term value and maximise our gas resources to ensure the company is resilient to future fluctuations in the global energy markets.”
Al Dhaheri said: “ADNOC has implemented a new strategy toward its LPG sales by negotiating longer term contracts to cope with the oversupply market especially after the Shale Gas Revolution. Russell Hardy, a member of Vitol’s Executive Committee, added: “We are delighted to be working with ADNOC on this long-term supply agreement. LPG is an important clean fuel and this will support our growing downstream LPG business.”
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/24022017/adnoc-and-vitol-ink-lpg-agreement/