The first deliveries under the agreement are expected to begin in 2026, TotalEnergies said in a statement on Tuesday.
The deal comes amid growing demand for natural gas and continuing uncertainty in global energy markets following disruptions caused by the Iran war.
Immediately after the deal’s signing, ADNOC Gas CEO Fatema Al Nuaimi said long-term demand for natural gas would continue to increase, adding that the global energy system would require more energy and a wider range of energy sources.
Speaking at the ADIPEC energy conference in Abu Dhabi, Al Nuaimi also called for greater flexibility and cooperation between energy companies when managing long-term supply contracts.
She argued that conventional contractual arrangements could struggle to accommodate rapidly changing market conditions.
“Contracts are very rigid, written with terms and conditions, and no matter how you craft them, they are not fit for the different circumstances that face us in the market,” she said.
Al Nuaimi stressed the importance of companies working together and adopting a more flexible approach to contractual commitments as energy markets evolve.
ADNOC, in August, reported a 52% decline in second-quarter profit after sales were affected by the closure of the Strait of Hormuz due to the Iran war.
ADNOC Gas posted a second-quarter profit of USD 665 million, compared with USD 1.39 billion in the corresponding period a year earlier.
However, the result exceeded the company’s guidance range of USD 400 million to USD 600 million.
The Strait of Hormuz is a critical international energy shipping route, and disruptions to maritime traffic through the strategically important waterway have affected regional energy exports and contributed to volatility in global oil and gas markets.
The five-year LNG agreement with TotalEnergies was announced as the UAE hosts ADIPEC, one of the world’s largest energy conferences, six months after announcing its departure from the Organization of the Petroleum Exporting Countries (OPEC).
The UAE had been a member of OPEC for 59 years before announcing its decision to leave the organisation in April, weeks after the Iran war’s beginning.
Despite the geopolitical and operational disruptions emerging from the war, UAE Energy Minister Suhail al-Mazrouei told industry executives at ADIPEC on Monday that the Gulf major’s oil exports had, on some occasions, exceeded pre-war levels.
Al-Mazrouei said the UAE would protect its energy infrastructure and invest in new export routes to strengthen its ability to deliver supplies to international markets.
Figures compiled by OPEC from secondary sources support the increase in UAE production.
UAE pumped 3.917 million barrels per day (bpd) of crude oil in September, representing a 15% increase from February.
September’s output was 470,000 bpd above the OPEC+ quota for the UAE in May.
The International Energy Agency (IEA) estimated UAE production even higher, expecting the country to have produced 4.4 million bpd in September.
“Including crude oil, condensate and other liquids, UAE production reached a record 5.3 million bpd during the month,” according to the IEA.
The UAE’s departure from OPEC and the wider OPEC+ alliance has attracted attention as the country increases production amid regional supply disruptions.
With international oil supplies tightening, the ability to adjust production and exports has become increasingly important for major energy producers.
However, analysts have warned that overall supplies remain tight, particularly for certain refined petroleum products.
Governments have also drawn down strategic inventories to manage disruptions and will eventually need to replenish those reserves.
Two people familiar with UAE oil policy told Reuters that the country’s freedom from OPEC production restrictions had positioned it to respond more effectively to market demand.
Abu Dhabi has also rapidly expanded ship-to-ship transfers to move crude oil beyond the Strait of Hormuz, helping maintain export flows despite disruptions to the conventional shipping route.