The Abu Dhabi National Oil Company (ADNOC) has signed a 10-year deal with an independent energy trader Vitol to supply liquid petroleum gas (LPG).
Under the deal, ADNOC will supply 528,000 tonnes of LPG per year to Vitol for a period of ten years.
The agreement, which will expire on 31 December 2026, has been signed at the International Petroleum Week in London, UK.
With major operations in Geneva, Houston, London and Singapore, Vitol is engaged in the trading and distribution of energy products.
The company distributes around 6 million bpd of crude oil and products and 10 million tonnes of LPG per annum. It reported revenues of about $168bn in 2015.
Vitol has about 15.5 million metres of storage assets across six continents, 390,000 bpd of refining capacity and Shell-branded downstream businesses in 16 African countries and Australia.
ADNOC sales and marketing director Abdulla Salem 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.
Vitol executive committee member Russell Hardy said: "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.”
In January, ADNOC has signed an agreement with the Indian Strategic Petroleum Reserves (ISPRL) to establish a strategic crude oil storage in the southern Indian city of Mangalore.
The deal will allow to storage of 5.86 million barrels of ADNOC crude oil in underground facilities of the Karnataka state.
Image: ADNOC and Vitol officials during the signing of the deal. Photo: courtesy of Abu Dhabi National Oil Company.