The Abu Dhabi National Oil Company (ADNOC) said on Wednesday it had signed a deal with Vitol for the supply of 528,000 tonnes per year of liquefied petroleum gas (LPG) over the next 10 years.
The long-term agreement backdates to January this year and will expire on Dec. 31, 2026, a company statement 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 evolution,” Abdulla Salem Al Dhaheri, ADNOC sales and marketing director, said in the statement.
The agreement was signed on the sidelines of International Petroleum Week (IP WEEK), taking place in London, by Al Dhaheri and Russell Hardy, a member of Vitol’s Executive Committee.
Founded in Rotterdam in 1966, Vitol is a private company. It has over 40 offices worldwide and its largest operations are in Geneva, Houston, London and Singapore.
Its primary business is the trading and distribution of energy products globally including over 6 million bpd of crude oil and products and 10 million tonnes of LPG annually. Revenues in 2015 were $168 billion.
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.”
Vitol’s energy assets globally include over 15.5 million cubic meters of storage across six continents; 390,000 bpd of refining capacity and Shell-branded downstream businesses in 16 African countries, as well as Australia.
Vitol also has the only independent, long-standing refinery in Fujairah.
Vitol’s customers include national oil companies, multinationals, leading industrial and chemical companies and the world’s largest airlines.