Abu Dhabi National Oil Company (ADNOC) has signed a 15-year liquefied natural gas (LNG) sales and purchase agreement with Japan’s Osaka Gas.
Announced today (27th Feb), the deal will see ADNOC supply Osaka Gas with 0.8 million tonnes per annum of LNG from its Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi, which is set to begin operations in 2028.
The signed deal converts a previous heads of agreement into a definitive agreement. It also marks the first long-term LNG sales agreement between ADNOC and Osaka Gas.
Read more: Osaka Gas and ADNOC sign first long-term LNG deal
Under the agreement, LNG cargoes will be shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading.
Rashid Khalfan Al Mazrouei, Senior Vice-President of Marketing at ADNOC, said the agreement reinforces ADNOC’s long-standing energy partnership with Japan and supports its strategy to expand its global LNG footprint.
“Through the Ruwais LNG project, ADNOC will continue to provide more lower-carbon gas to meet growing global demand, fuel industries and power homes.”
The Ruwais LNG plant will be the first LNG export facility in the Middle East and Africa region to operate on clean power, offering low-carbon intensity LNG. The facility will also leverage artificial intelligence and the latest technologies to enhance safety and efficiency, minimise emissions and drive operational excellence.
In November 2024, ADNOC Gas said it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, estimated at around $5bn, in the second half of 2028.
Upon completion, the project, comprising two 4.8 million tonnes per annum liquefaction trains with a combined capacity of 9.6 million tonnes per annum, will more than double ADNOC Gas’ existing operated LNG production capacity to around 15 million tonnes per annum.
Earlier this year, ADNOC signed another Japanese deal with JERA Global Markets. The three-year agreement, worth $450, will see ADNOC supply JERA with around six million tonnes per annum of LNG from its Das Island liquefaction facility.
Believed to be the world’s third longest-running LNG plant, Das Island has shipped over 3,500 LNG cargoes worldwide since operations began in 1977.
