ADNOC and Osaka Gas secure landmark LNG deal for Ruwais project

In a significant move for the global energy sector, the Abu Dhabi National Oil Company (ADNOC) has finalised a long-term Heads of Agreement with Japan’s Osaka Gas for the supply of up to 0.8 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG). This deal represents ADNOC’s inaugural long-term LNG agreement with Osaka Gas, marking a key milestone in the company’s strategic expansion into the Japanese market.

ADNOC’s Major LNG Deal with Osaka Gas

Under the terms of the agreement, ADNOC will supply LNG primarily sourced from its lower-carbon Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi. The Ruwais LNG facility is expected to commence commercial operations by 2028. The LNG will be delivered to Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. (OGEST).

This agreement underscores ADNOC’s commitment to enhancing its position as a reliable global energy supplier. Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC, stated that this landmark agreement highlights the enduring energy partnership between the UAE and Japan. He noted that it reinforces ADNOC’s role as a responsible energy provider and aligns with the company’s broader strategy to support global energy transitions through secure and sustainable solutions. The Ruwais LNG project, part of ADNOC’s strategy to expand its global LNG footprint, now has long-term sales commitments covering 70% of the project’s total production capacity.

Osaka Gas Commends Deal for Stability and Sustainability

Keiji Takemori, Executive Vice President at Osaka Gas, expressed enthusiasm for securing LNG from ADNOC, citing the deal’s positive impact on the stability of Osaka Gas’s LNG procurement. He highlighted that the agreement will support the company’s transition to lower-carbon energy sources and its net zero target. Takemori emphasised Osaka Gas’s commitment to ensuring a stable energy supply while advancing the development and supply of natural gas as a transition fuel.

Ruwais LNG Project: A Pioneering Facility

The Ruwais LNG project is poised to be the first LNG export facility in the Middle East and Africa to operate on clean power, making it one of the lowest-carbon intensity LNG plants globally. The facility will feature advanced artificial intelligence and cutting-edge technologies to enhance safety, reduce emissions, and improve efficiency. With a planned capacity of 9.6 mmtpa from two LNG liquefaction trains, the project will more than double ADNOC’s current LNG production capacity in the UAE, reaching approximately 15 mmtpa.

This agreement with Osaka Gas is ADNOC’s first long-term LNG deal with a Japanese energy company since the early 1990s, reflecting a renewed focus on the Japanese market. Both companies are expected to finalise a detailed Sale and Purchase Agreement in the near future.