ADNOC Gas plc on Monday announced a three-year supply agreement valued at up to $1.2 billion with the French multi-energy company TotalEnergies Gas and Power Limited for the export of liquefied natural gas (LNG).

Under the terms of the agreement, through its subsidiary, ADNOC Gas will supply TotalEnergies LNG, which will be delivered to various export markets around the world.

TotalEnergies Gas and Power Ltd. is a subsidiary of TotalEnergies, a French multinational energy company, which has operated in the UAE for more than 80 years.

The French company said the additional volumes "will strengthen our global LNG portfolio, our ability to supply the growing Asian markets, and our ambition to accompany our customers in their energy transition.”

The three-year contract is expected to commence in 2023.

ADNOC Gas has access to 95% of the UAE's natural gas reserves, estimated to be the seventh largest globally. It supplies more than 60% of the UAE's gas needs. Early this year, raised $2.5 billion in one of the biggest IPOs globally.

(Reporting by Brinda Darasha; editing by Seban Scaria)