ADNOC And Shell Finalise 15-Year LNG Supply Agreement For Ruwais Project

ADNOC has secured a 15-year Sales and Purchase Agreement (SPA) with Shell International Trading Middle East Limited FZE, a subsidiary of Shell plc. This agreement involves the supply of up to 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG). The deal was formalised during ADIPEC 2025 and is ADNOC's first long-term LNG sales agreement with Shell.

The Ruwais LNG project, located in Al Ruwais Industrial City, Abu Dhabi, will primarily source the LNG. This facility will be the first in the Middle East and Africa to operate on clean power, aiming for low carbon intensity. The plant will utilise artificial intelligence and modern technologies to boost safety, efficiency, and emissions performance.

Tom Summers, Executive Vice President of Shell LNG Marketing and Trading, highlighted the longstanding partnership between Shell and ADNOC. He stated, "Shell’s trusted partnership with ADNOC dates back more than 50 years and today we share a vision of strengthening global energy security through strategic collaboration. This agreement is a significant milestone in our partnership with ADNOC and supports Shell’s strategy of expanding our LNG portfolio."

This SPA converts an earlier Heads of Agreement into a definitive contract, marking progress in ADNOC's commercialisation of the Ruwais LNG project. Since the Final Investment Decision (FID) in July 2024, over 8 mtpa of the project's planned 9.6 mtpa capacity has been secured through long-term agreements with customers in Asia and Europe.

The Ruwais LNG plant will feature two liquefaction trains each with a capacity of 4.8 mtpa. This setup will more than double ADNOC Gas' current LNG production capacity to about 15 mtpa. Such expansion aligns with ADNOC's strategy to grow its LNG portfolio to meet increasing global demand.

Fatema Al Nuaimi, CEO of ADNOC Gas, remarked on the achievement: "This agreement with Shell marks a significant milestone that reinforces ADNOC’s position as a reliable global supplier of lower-carbon LNG. Securing over 80 percent of Ruwais LNG’s capacity in just over a year from FID is a remarkable achievement that sets a new benchmark for large-scale LNG projects globally."

Project Timeline and Stakeholder Involvement

The construction phase is progressing well, with contractor mobilisation and site works on schedule for commissioning by late 2028. Shell holds a 10 percent stake in this project through its subsidiary, Shell Overseas Holdings Limited.

While it typically takes four to five years for similar projects to market such volumes, Ruwais is advancing swiftly. This rapid progress underscores ADNOC's commitment to enhancing its role as a key player in the global energy sector.

This strategic collaboration not only strengthens ties between ADNOC and Shell but also supports their shared vision for bolstering global energy security through innovative solutions.

With inputs from WAM