ADNOC Signs Supply Agreement with Major Japanese Firm for Ruwais LNG Project

Abu Dhabi National Oil Company and Osaka Gas have signed a long-term Heads of Agreement (HOA) to deliver up to 0.8 million metric tonnes of liquefied natural gas (LNG) annually. This marks the first long-term LNG deal between Osaka Gas and ADNOC.

The LNG will be primarily sourced from the Ruwais LNG project, currently under development in Al Ruwais Industrial City, Al Dhafra, Abu Dhabi, and is expected to start commercial operations in 2028. ADNOC recently made the final investment decision on the USD 5.5 billion Ruwais LNG project.

Ruwais LNG Project Concept: ADNOC

The Ruwais LNG  project will be the first LNG export facility in the Middle East and North Africa to run on clean power. Under the agreement, LNG cargo will be shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. (OGEST). 

Find More Details About the Ruwais LNG Project See More

Osaka Gas and ADNOC will work together to conclude a detailed sale and purchase agreement in the coming months based on the terms of the HOA. Keiji Takemori, Osaka Gas Executive Vice President, said, “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.”

Background of the Agreement

This is ADNOC’s first long-term LNG deal with a Japanese energy company since the early 1990s. This contract with ADNOC will significantly enhance the stability of Osaka Gas’ LNG procurement. Additionally, the agreement with Osaka Gas is one of several long-term LNG sales commitments ADNOC has signed with international partners for Ruwais LNG, which take ADNOC’s long-term sales commitments to 70% of the project’s total production capacity. 

Project Details

The Ruwais LNG plant is set to be the first LNG export facility in the Middle East and North Africa region to run on renewable power, making it one of the lowest-carbon-intensity LNG plants in the world. The facility will leverage artificial intelligence and the latest technologies to enhance safety, minimize emissions, and drive efficiency.

The Ruwais LNG project will consist of two 4.8 mmtpa LNG liquefaction trains with a total capacity of 9.6 mmtpa, which will double ADNOC’s existing UAE LNG production capacity to around 15 mmtpa. Here is a brief overview of the project:

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