Abu Dhabi National Oil Company (ADNOC) announced today the signing of a long-term Heads of Agreement with Osaka Gas, one of Japan’s largest utility companies, for the delivery of up to 0.8 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG).
According to reports, the LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi, and expected to start commercial operations in 2028.
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 Pte. Ltd.
The agreement with Osaka Gas is one of several long-term LNG sales commitments ADNOC has signed with international partners for Ruwais LNG, bringing long-term sales commitments to 70% of the project’s total production capacity.
The Ruwais LNG plant is set to be the first LNG export facility in the Middle East and Africa region to run on clean 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, more than doubling ADNOC’s existing UAE LNG production capacity to around 15 mmtpa as the company builds its international LNG portfolio.
This agreement is ADNOC’s first long-term LNG deal with a Japanese energy company since the early 1990s. ADNOC and Osaka Gas will work together to conclude a detailed Sale and Purchase Agreement in the coming months based on the terms of the LNG agreement.
Earlier last month, global energy majors Shell, TotalEnergies, BP, and Japan’s Mitsui secured a collective 40% stake in the Ruwais LNG project, following landmark agreements signed.
Each company—BP, Mitsui & Co., Shell, and TotalEnergies—will be awarded a 10% equity stake in the Ruwais LNG project, with ADNOC retaining a 60% majority stake
