ENN LNG (Singapore) Pte. Ltd. (“ENN LNG”), a wholly owned subsidiary of ENN Natural Gas Co., Ltd. (“ENN NG”), and ADNOC have signed a long-term LNG Sale and Purchase Agreement (“SPA”). Under the SPA, ADNOC will supply approximately one million tonnes per annum (mtpa) of LNG to ENN NG for a period of 15 years. The LNG will primarily be sourced from ADNOC’s Ruwais LNG project. The SPA marks the largest LNG deal by volume ever signed between the UAE and a Chinese partner.

Against the backdrop of deep shifts in global gas supply dynamics and heightened price volatility, the SPA represents a major step forward in ENN NG’s strategy to enhance the resilience of its energy supply chain and diversify its global portfolio. The oil-linked supply helps balance the overall cost of structure of ENN NG’s resource portfolio. This structure enhances the stability of ENN NG’s long-term procurement costs and strengthen the company’s risk management capabilities. In particular, during periods of widening oil-gas price spreads and volatile spot markets, the SPA will help ENN NG mitigate procurement cost fluctuations and bolster its ability to navigate global energy price uncertainties. This not only strengthens the long-term security of natural gas supply in China, but also provides robust support for meeting the stable gas demand of residential, commercial, and industrial end-users.

The signing of this SPA marks a concrete step in ENN’s ongoing efforts to expand its resource portfolio and strengthen its capabilities in managing international energy resources. It also lays a solid foundation for the resource synergy envisioned under the company’s ongoing capital restructuring. Recently, ENN announced its plan to privatize ENN Energy through a share swap and cash offer, aiming to establish an integrated A+H share listing structure. Upon completion of the transaction, ENN NG will further strengthen its integrated resource portfolio, enhance cost control and supply coordination, and continue to solidify and expand the competitiveness and resilience of its resource pool.

About ENN

As one of the largest private energy companies in China, ENN Natural Gas Co., Ltd. (ENN NG, stock code 600803.SH) operates over 250 city gas projects nationwide, has annual LNG distribution capacity over 10 bcm, runs the first large-scale private LNG terminal in China -- Zhoushan LNG Terminal. Its business layout covers the entire natural gas value chain, including distribution, trading, storage and transportation, production and engineering. Based upon the practices in the field, ENN NG has built an intelligent operation platform for natural gas industry – GreatGas.cn It accelerates the aggregation of demand, resources, reserves, and delivery ecology of the natural gas industry, innovates and develops digital intelligence services, promotes the digital intelligence upgrade of the natural gas industry. In 2021, ENN NG’s total natural gas sales volume was 37.2 bcm, accounting approximately 10% of China’s total natural gas consumption.

About ADNOC

ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification.