ADNOC Enters First Long-term LNG Deal With Osaka Gas For Ruwais Project

ADNOC has signed a long-term Heads of Agreement with Osaka Gas, a major Japanese utility company, for the supply of up to 0.8 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG). This LNG will be sourced from ADNOC’s Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi, which is set to commence operations in 2028.

Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing, stated, "This landmark LNG agreement, our first long-term LNG deal with Osaka Gas, underscores the strong, long-standing energy partnership between the UAE and Japan. This agreement further enhances ADNOC’s position as a reliable and responsible global energy provider and reflects our commitment to help meet Japan’s energy needs with secure and sustainable energy solutions. The Ruwais LNG project supports our broader strategy to expand our global LNG footprint to enable the energy transition."

The agreement marks ADNOC's first long-term LNG deal with a Japanese company since the early 1990s. It highlights ADNOC's renewed focus on the Japanese market. The Ruwais LNG project will consist of two liquefaction trains, each with a capacity of 4.8mmtpa, totalling 9.6mmtpa. This will more than double ADNOC’s current UAE LNG production capacity to around 15mmtpa.

Keiji Takemori, Osaka Gas Executive Vice President, commented on the deal: "Osaka Gas is delighted to secure LNG from ADNOC, a reliable and responsible global energy supplier. This agreement will significantly enhance the stability of Osaka Gas’ LNG procurement. It will also strengthen the foundation of our stable energy supply to customers, transition to lower carbon energy, and acceleration towards our net zero target. We will continue working on the stable procurement, development and supply of natural gas as a key transition fuel."

The Ruwais LNG plant aims to be the first in the Middle East and Africa region powered by clean energy. It will use artificial intelligence and advanced technologies to boost safety, reduce emissions and improve efficiency. The facility's low-carbon intensity makes it one of the most environmentally friendly LNG plants globally.

This agreement with Osaka Gas is part of several long-term commitments ADNOC has secured for Ruwais LNG. These agreements cover 70% of the project's total production capacity. The cargoes under this deal will be shipped to Osaka Gas' destination ports and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. (OGEST).

Expanding Global LNG Footprint

ADNOC's strategy includes expanding its global LNG footprint as part of its broader goal to support the energy transition. The Ruwais project aligns with this strategy by providing secure and sustainable energy solutions that meet international partners' needs.

In the coming months, ADNOC and Osaka Gas plan to finalise a detailed Sale and Purchase Agreement based on this Heads of Agreement.

This collaboration not only strengthens ties between UAE and Japan but also ensures a stable supply chain for both parties involved.

With inputs from WAM