ADNOC And PETRONAS Sign Landmark 15-Year LNG Supply Agreement For Ruwais Project

ADNOC has formalised a second Sales and Purchase Agreement (SPA) with Malaysia's PETRONAS for the Ruwais liquified natural gas (LNG) project. This 15-year agreement, which involves supplying 1 million tonnes per annum (mtpa) of LNG, solidifies a previous Heads of Agreement between the two companies. The LNG will mainly come from the Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi.

The Ruwais LNG facility is set to become the first in the Middle East and Africa to operate on clean power. This will make it one of the lowest-carbon intensity LNG plants globally. The plant will utilise artificial intelligence and cutting-edge technologies to boost safety, reduce emissions, and improve efficiency.

Deliveries from the Ruwais project are anticipated to begin in 2028 when commercial operations commence. So far, over 8 mtpa of its production capacity has been secured through long-term agreements with international clients. Fatema Al Nuaimi, ADNOC Executive Vice President of Downstream Business Management, stated that this agreement highlights ADNOC's role as a dependable global energy supplier.

In November 2024, ADNOC Gas announced plans to acquire ADNOC’s 60% stake in the Ruwais LNG project at an estimated cost of $5 billion by late 2028. Once completed, this project will include two liquefaction trains with a total capacity of 9.6 mtpa, effectively doubling ADNOC Gas’ current operated LNG production capacity to approximately 15 mtpa.

Shamsairi Ibrahim, Vice President of LNG Marketing & Trading at PETRONAS, remarked on the significance of this partnership with ADNOC. He noted that it strengthens PETRONAS' business ties with the UAE and complements their upstream activities while reinforcing economic relations between Malaysia and the UAE.

This collaboration not only enhances PETRONAS' LNG portfolio but also ensures a reliable supply of lower-carbon energy for Malaysia's domestic needs. It supports energy security for customers and fosters deeper government-to-government cooperation while enabling sustainable development and providing solutions for energy transition.

Fatema Al Nuaimi further commented: "Natural gas plays a critical role in meeting the world’s energy needs, and we are proud to partner with PETRONAS to deliver lower-carbon LNG through this landmark agreement." This milestone supports increasing demand in Asia for cleaner energy solutions.

The Ruwais LNG project represents a significant step forward in sustainable energy production. By leveraging advanced technology and clean power sources, it aims to meet growing global demand for environmentally friendly energy options while maintaining high standards of safety and efficiency.

With inputs from WAM