UAE: ADNOC Signs 15-Year Agreement With Osaka Gas For Ruwais LNG Project

ADNOC has finalised a Sales and Purchase Agreement (SPA) with Osaka Gas, a major utility firm in Japan. This agreement involves the supply of up to 0.8 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from ADNOC's Ruwais LNG project. The SPA, which spans 15 years, transforms a prior Heads of Agreement into a formal contract.

The Ruwais LNG project, located in Al Ruwais Industrial City, Abu Dhabi, is expected to commence operations in 2028. This SPA is the fourth for Ruwais LNG and signifies a key step in ADNOC's strategy to expand its global LNG reach. It also strengthens ADNOC's role as a leading supplier of lower-carbon LNG worldwide.

Ruwais LNG has committed up to 8 mtpa of its 9.6 mtpa production capacity to international buyers across Asia and Europe through long-term agreements. Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President of Marketing, stated, "This agreement with Osaka Gas reinforces our long-standing energy partnership with Japan and supports our strategy to expand our global LNG footprint."

Al Mazrouei added that through the Ruwais LNG project, ADNOC aims to provide more lower-carbon gas to meet increasing global demand, fuel industries, and power homes. The project will be the first LNG export facility in the Middle East and Africa region operating on clean power.

The Ruwais plant will utilise artificial intelligence and advanced technologies to boost safety and efficiency while reducing emissions. This makes it one of the lowest-carbon intensity LNG plants globally. The facility is designed to drive operational excellence by leveraging these innovations.

LNG shipments under this agreement will be delivered to Osaka Gas's destination ports and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. (OGEST). Keiji Takemori, Executive Vice President of Osaka Gas, remarked on ADNOC's reliability as an LNG supplier for nearly fifty years.

Takemori expressed confidence in the new contract with ADNOC, highlighting its role in ensuring a stable energy supply for their customers. This collaboration marks the first long-term LNG sales agreement between ADNOC and Osaka Gas.

The partnership between ADNOC and Osaka Gas underscores their commitment to sustainable energy solutions while meeting growing global energy needs efficiently. As both companies look forward to this collaboration, they aim to strengthen their positions in the evolving energy landscape.

With inputs from WAM