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The agreement is for the supply of 0.7mn tonnes of LNG.

ADNOC Gas has entered into a US$400mn three-year LNG supply agreement with Germany’s SEFE Securing Energy for Europe, as it continues to expand its global business

The agreement is for the delivery of 0.7mn tonnes of LNG, which will be supplied from ADNOC Gas’ Das Island 6 mtpa liquefaction facility. It builds on the ongoing collaboration between the UAE and Germany, including the 2022 Energy Security and Industry Accelerator (ESIA) pact and the 2024 Joint Declaration with the state of Baden-Württemberg, both aimed at fostering energy security and sustainable fuel development.

Fatema Al Nuaimi, chief executive officer of ADNOC Gas, said: “This agreement marks a significant step in strengthening our long-standing partnership with SEFE and reinforces ADNOC Gas’ role as a reliable and responsible global energy provider, committed to supporting Germany’s energy security.”

Frédéric Barnaud, chief commercial officer of SEFE, said: “Over the past two decades, we’ve built a strong partnership with ADNOC, and we value our relationship with such a reputable and reliable supplier. This new medium-term LNG contract builds on the long-term supply agreement with ADNOC that we signed last year, thereby adding another flexible source of LNG to our portfolio – to the benefit of both Europe’s security of supply and our global market trading activities.”

As a lower-carbon energy source, LNG plays a critical role as a transition fuel. ADNOC has ambitions to significantly grow its LNG capacity and strengthen its position as a global LNG player, shipping LNG to a growing range of international markets in Asia, Europe and beyond.

The LNG carrier market has come under sustained pressure.

New US tariffs and escalating global trade tensions have impacted vessel markets in the first half of 2025, depressing investment in some sectors while accelerating strategic orders in others, according to a report by Veson Nautical, a leading provider of maritime freight management solutions and data intelligence

Tanker slowdown

The tanker sector saw a marked slowdown, with newbuilding orders down 74% y-o-y and S&P volumes falling by 31%. Softer earnings and regulatory uncertainty were key drivers. Medium Range 2 (MR2) product tankers bucked the trend, accounting for over a third of transactions as buyers capitalised on lower values. Usually sized between 45,000 and 55,000 DWT, MR2s are product tankers that typically ship gasoline, diesel, jet fuel and other refined products across regional and intercontinental routes. Values for 15-year-old units fell by 24%, drawing renewed interest in ageing but versatile tonnage.

Pressure on the LNG carrier sector

The LNG carrier sector came under sustained pressure during the first six months of 2025, with average time charter earnings for large vessels falling by 66% y-o-y. The decline was driven by continued fleet expansion outpacing demand growth, along with weaker seasonal fundamentals. As rates fell, demolition activity increased sharply, with seven vessels scrapped—a 250% rise on the same period in 2024. Older steam turbine vessels saw the steepest value declines, with 15-year-old units down by more than 8%. While demand for LNG is expected to rise in the coming years, the current tonnage surplus is likely to keep pressure on earnings through the rest of 2025.

Tariff uncertainty hits the LPG carrier sector

In the liquid petroleum gas (LPG) carrier market, S&P activity slowed by 25% y-o-y, weighed down by trade policy uncertainty between the US and China. Newbuilding orders dropped by 80% compared with the same period last year. Most activity was concentrated at the very large and small ends of the fleet, with limited momentum in the midsize space. Values fell across the board, though long-term averages remain high by historical standards.

“Geopolitical pressure is no longer a background factor; it’s shaping the way owners think about risk, timing and capital,” said Matt Freeman, chief market analyst at Veson Nautical. “From regulation to rerouting, disruption is now part of the operating environment, and owners are recalibrating their strategies accordingly.”

The contract involves the testing and inspection of umbilicals. (Image source: JDR Cable Systems)

JDR Cables Systems (JDR), the global subsea cable supplier and service provider has been awarded a major service contract by Larsen & Toubro (L&T), to test 14 umbilical cables for offshore platforms in the Middle East

The work covers two major work scopes across multiple offshore platforms, to ensure the safety and efficient operation of the umbilical cables. This includes the testing and monitoring of critical hydraulic and electrical control systems to support operations across the platforms, from pre-deployment testing, to monitoring during lay operations, and integration testing. The project will be managed from JDR’s UK service centre in Newcastle, with offshore technicians, equipment, and technical support provided throughout the operation to ensure the umbilicals are properly monitored during the installation and integration phases and provide onsite support throughout the whole process.

Alan Combe, service sales manager EMEA at JDR, said, “Securing this contract reflects the strength of our service offering and the capability of our team to deliver technically complex service work in the Middle East. It’s an exciting region, full of opportunity and innovation, and an important part of JDR’s long-term focus. We’re looking forward to working closely with the L&T team throughout the installation and testing phases.” 

“The Middle East continues to present strong opportunities for JDR, both for our subsea cables and our service offering,” added Carl Pilmer, chief sales officer at JDR. “As we consolidate our presence in the Middle East, this project is a good example of how we’re supporting customers in the region with reliable and high-quality delivery.”             

Oil prices remain under pressure.

Oil prices remain under pressure in the face of potential oversupply and uncertain demand, as OPEC+ rolls back output cuts

The eight OPEC + countries which previously announced additional voluntary adjustments (ie Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman) will implement a production adjustment of 548,000 bpd per day in August 2025 from the July 2025 required production level, in accordance with the decision agreed upon on 5 December 2024 to start a gradual and flexible return of the 2.2mn bpd voluntary adjustments starting from 1 April 2025. This is higher than the last three rollbacks of 411,000 bpd and means that OPEC+ is on track to fully unwind 2.2mn bpd of cuts nearly a year ahead of schedule.

“The gradual increases may be paused or reversed subject to evolving market conditions. This flexibility will allow the group to continue to support oil market stability,” said OPEC in a statement, noting “steady global economic outlook and current healthy market fundamentals, as reflected in the low oil inventories”. The eight countries will meet on 3 August 2025 to decide on September production levels.

“Investors remain cautious, especially as seasonal demand typically softens later in the year and US trade tensions intensify. President Trump’s upcoming tariffs, including a fresh threat targeting BRICS-aligned nations, added to the markets cautious tone,” commented global financial group MUFG, adding that the move marks a sharp shift from OPEC+’s past restraint.

“Opec+ keeps surprising the market,” said Jorge León, head of geopolitical analysis and senior vice president at energy consultancy Rystad. “This sends a clear message, for anyone still in doubt, that the group is firmly shifting towards a market share strategy.”

“It was pointless to maintain these voluntary cuts once the strategy became market share rather than price defence. But for the sake of appearances, and perhaps with the hope of managing market expectations, they have to go through the motions anyway, notionally unwinding the cuts at an incremental pace,” said Harry Tchilinguirian, group head of research at Onyx Capital Group in a LinkedIn post.

Hussain Sultan Lootah has been appointed acting chief executive officer of ENOC Group. (Image source: ENOC Group)

The UAE’s ENOC Group has appointed Hussain Sultan Lootah as acting chief executive office, succeeding Saif Humaid Al Falasi, who has led the Group for the last 10 years

The company said in a statement that the appointment aligns with the Group's commitment to drive the future of energy and support Dubai's ambitious plans of economic diversification and sustainable development.

Lootah has three decades of leadership experience in the oil & gas industry, with strong expertise in finance, commercial strategy, project management, and talent development. Throughout his career he has held key leadership roles, leading operations and driving significant progress in Emiratisation and human capital development.

Lootah said, “ENOC Group is at the forefront of building a more sustainable energy landscape for the UAE and the wider region. I am honoured to step into this new role and be part of the ENOC Group success journey, and look forward to working closely with ENOC’s talent and leaders to build on its legacy of innovation and excellence.”

A wholly owned entity of the Government of Dubai, ENOC has over the past 30 years evolved from a local oil and gas player to an integrated global player with assets and operations across the energy sector value chain. Its energy business currently comprise Exploration and Production, Supply Trading and Processing, Terminals, Fuel Retail, Aviation and Products.

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