China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

China's privately controlled ENN Natural Gas and state-run Zhenhua Oil have each signed a term deal to buy liquefied natural gas from Abu Dhabi National Oil Company (ADNOC).

ENN Natural Gas said on its official WeChat account on Saturday that the deal covers annual supplies of about one million metric tons for 15 years, marking ADNOC's largest LNG contract with a Chinese buyer.

"The deal marks a key step for ENN towards enhancing a stable energy supply chain and diversifying supplies," ENN said.

Shanghai-listed ENN Natural Gas, which currently holds a 34.28% stake in Hong Kong-listed ENN Energy, is proposing to buy out the rest of the clean energy distributor for roughly $7.65 billion.

Separately, state oil and gas trader Zhenhua Oil agreed a 5-year deal with ADNOC starting in 2026 for up to 12 cargoes a year, said a Chinese industry source with direct knowledge of the agreement.

Under Zhenhua's first long-term LNG contract, pricing is on a delivered basis into Rudong in east China's Jiangsu province, with some shipments benchmarked to the Japan Korea Marker and others to Brent oil, said the source, who declined to be named as he is not authorised to speak to the media.

Zhenhua Oil, which already partners with ADNOC in Abu Dhabi, is building its first LNG terminal in Rudong, with commissioning expected in the first quarter of 2026.

ADNOC CEO Sultan Al Jaber attended the opening of the company's new Beijing office on Friday, according to the industry source, who attended the ceremony, and a report by Dubai-based China-Arab TV.

Without giving further details, the report said ADNOC signed three LNG supply deals with Chinese partners during Al Jaber's visit.

Zhenhua Oil and ADNOC were not immediately available for comment over the weekend.

(Reuters - Reporting by Chen Aizhu in Singapore; Additional reporting by Samuel Shen in Shanghai; Editing by Andrew Heavens, Kirsten Donovan)

Related Stories