ENN Natural Gas announced via its official WeChat account on Saturday that its 15-year contract with ADNOC entails an annual supply of approximately one million metric tons of LNG. This landmark agreement represents ADNOC's most substantial LNG contract to date with a Chinese buyer, signifying a deepening energy partnership between the two entities. "The deal marks a key step for ENN towards enhancing a stable energy supply chain and diversifying supplies," ENN stated, highlighting the strategic importance of this long-term commitment.
ENN Natural Gas, a Shanghai-listed company with a significant 34.28% stake in Hong Kong-listed ENN Energy, is currently pursuing a complete buyout of the clean energy distributor in a deal valued at roughly $7.65 billion. This acquisition further emphasizes ENN's ambition to solidify its position within China's evolving energy sector.
In a separate development, state oil and gas trader Zhenhua Oil has also secured a 5-year LNG supply agreement with ADNOC, commencing in 2026. According to a Chinese industry source with direct knowledge of the agreement, Zhenhua Oil will receive up to 12 LNG cargoes annually under this deal. This marks Zhenhua Oil's inaugural long-term LNG contract, a significant step for the state-backed trader.
The pricing mechanism for Zhenhua's LNG supply will be on a delivered basis to Rudong, located in Jiangsu province in eastern China. The source revealed that the pricing for some shipments will be benchmarked against the Japan Korea Marker (JKM), a key indicator for spot LNG prices in Asia, while others will be linked to Brent crude oil prices, providing a degree of price diversification.
Zhenhua Oil, which already maintains a partnership with ADNOC in Abu Dhabi, is currently constructing its first LNG receiving terminal in Rudong. The commissioning of this crucial infrastructure project is anticipated in the first quarter of 2026, aligning with the commencement of its new LNG supply agreement with ADNOC.
Adding further weight to these developments, ADNOC CEO Sultan Al Jaber attended the opening ceremony of the company's new Beijing office on Friday. This event, attended by the aforementioned industry source and reported by Dubai-based China-Arab TV, underscores ADNOC's increasing focus on the Chinese market. The China-Arab TV report indicated that ADNOC signed a total of three LNG supply deals with Chinese partners during Al Jaber's visit, although further details regarding the third agreement were not immediately available.
Neither Zhenhua Oil nor ADNOC were available for immediate comment over the weekend to officially confirm the specifics of the agreements beyond ENN's public announcement. However, these significant long-term LNG supply deals between ADNOC and two key Chinese energy players signal a strengthening energy relationship and highlight China's sustained efforts to secure stable and diversified natural gas supplies to fuel its economic growth and transition towards cleaner energy.