ADNOC cargoes for Japan start landing in India

Vol 22, PW 23 (05 Sep 19) Midstream & Downstream

ADNOC is stepping up LNG exports to India following Japan's decision to sharply reduce imports from the UAE-based producer since April (2019).

At least four ADNOC-sourced cargoes are expected at both DAHEJ and Hazira this month (September) with the first expected on September 6 aboard LNG tanker Umm Al Ashtan. This is in addition to 17 cargoes ADNOC has already delivered to India between March 26 and August 21.

"After its contract with JERA ended in March (2019)," we hear, "ADNOC has been aggressively pushing LNG into India." JERA, short for Japan's Energy for a new eRA, is a JV between the Tokyo Electric Power and Chubu Electric Power Groups.

In August 2018, JERA announced it would sharply reduce ADNOC imports from more than 60 cargoes a year under a 25-year SPA for 4.3m t/y to eight cargoes under a lighter three-year 0.5m t/y contract ending March 2022. "Much of this 4.3m t/y originally for Japan is finding its way to India," adds a source.

In April 2019, hardly a month after the JERA contract ended, ADNOC signed 500,000 t/y contracts with LNG traders Marubeni, Mitsui, Mitsubishi, Gunvor and Trafigura to help it find a home for LNG destined for Japan. A sixth contract was signed with Vitol for between 250,000-500,000 t/y.

On August 6 and 21, ADNOC supplied two cargoes to GSPC through Vitol.