Abu Dhabi National Oil Company has formalised a 15-year sales and purchase agreement with Japan’s Osaka Gas, committing to supply up to 0.8 million tonnes per annum of liquefied natural gas from its Ruwais LNG project. This definitive contract transitions a prior heads-of-agreement into a binding commitment, marking the inaugural long-term LNG supply arrangement between the two corporations.
The Ruwais LNG facility, currently under development in Al Ruwais Industrial City, Abu Dhabi, is slated to commence operations in 2028. Designed to be a pioneer in environmental sustainability, it will be the first LNG export plant in the Middle East and Africa to operate entirely on clean energy sources. The facility aims to be among the lowest carbon intensity LNG plants globally, utilising artificial intelligence and advanced technologies to enhance safety, reduce emissions, and optimise efficiency.
ADNOC’s Senior Vice President of Marketing, Rashid Khalfan Al Mazrouei, emphasised the strategic importance of the agreement, stating, “This partnership with Osaka Gas reinforces our enduring energy relationship with Japan and aligns with our strategy to broaden our global LNG footprint. Through the Ruwais LNG project, ADNOC is poised to deliver more lower-carbon gas to meet the escalating global demand, energise industries, and power households.”
The Ruwais LNG project is a cornerstone of ADNOC’s ambitious plan to expand its LNG production capacity. Upon completion, the facility will feature two electrically powered liquefaction trains, each with a capacity of 4.8 mtpa, effectively doubling ADNOC’s current LNG output from 6 mtpa to over 15 mtpa. This expansion is set to position ADNOC as a formidable competitor in the global LNG market, rivalling regional peers such as Qatar and Saudi Arabia.
In addition to Osaka Gas, ADNOC has secured long-term SPAs with several international energy firms. Notably, agreements have been established with Germany’s EnBW Energie Baden-Württemberg AG for 0.6 mtpa and India’s Indian Oil Corporation for 1 mtpa of LNG, both spanning 15 years. These contracts underscore ADNOC’s commitment to diversifying its client base and strengthening energy security for its partners across Asia and Europe.
The Ruwais LNG project has attracted significant international investment, with energy giants Shell, BP, TotalEnergies, and Japan’s Mitsui each acquiring a 10% stake. ADNOC retains a majority 60% share and serves as the lead developer and operator of the facility. This consortium reflects a collaborative approach to advancing energy infrastructure and meeting the global demand for cleaner energy solutions.
Osaka Gas, one of Japan’s leading utility companies, views this agreement as a strategic move to secure a stable and diversified LNG supply. The LNG procured from ADNOC will be distributed to meet the energy needs of consumers in Japan and Singapore, thereby enhancing energy security and supporting economic growth in these regions.
The Ruwais LNG facility is designed with a strong emphasis on sustainability and technological innovation. By leveraging clean power sources and integrating cutting-edge technologies, the plant aims to minimise its environmental footprint while maximising operational efficiency. This approach aligns with global efforts to transition towards more sustainable energy systems and reduce greenhouse gas emissions.
