ADNOC expands LNG portfolio with 15-year supply agreement with Osaka Gas

The Abu Dhabi National Oil Company (ADNOC) has strengthened its global liquefied natural gas (LNG) market position by signing a 15-year Sales and Purchase Agreement (SPA) with Osaka Gas. The deal, which secures the supply of up to 0.8 million tonnes per annum (mtpa) of LNG, marks the first long-term agreement between ADNOC and Osaka Gas and further reinforces the company’s strategy to expand its lower-carbon LNG footprint.

With LNG sourced from the Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi, this agreement cements ADNOC’s role as a key supplier to Japan, a market that has long relied on stable LNG imports. The SPA, which converts a previous Heads of Agreement into a definitive contract, also underscores Japan’s commitment to securing a reliable energy supply as global demand for natural gas continues to rise.

What Is the Significance of the Ruwais LNG Project?

The Ruwais LNG project is a major component of ADNOC’s strategy to expand its low-carbon energy portfolio. Once operational in 2028, the plant will become the first LNG export facility in the Middle East and North Africa region to operate solely on clean power. This approach positions Ruwais LNG as one of the world’s lowest-carbon-intensity LNG plants, aligning with ADNOC’s broader commitment to sustainability and emissions reduction.

The project will have a total liquefaction capacity of 9.6 mtpa, with nearly 8 mtpa already committed through long-term agreements with international buyers across Asia and Europe. The facility will utilize advanced artificial intelligence and digital technologies to optimize safety, efficiency, and emissions control, reinforcing its role as a next-generation LNG production hub.

How Does This Agreement Strengthen ADNOC’s Global LNG Expansion?

By securing long-term sales agreements with major international buyers, ADNOC is rapidly establishing itself as a dominant player in the LNG sector. The Osaka Gas agreement represents an important step in ADNOC’s efforts to diversify its LNG customer base, ensuring that a significant portion of its production capacity is allocated before Ruwais LNG becomes operational.

This agreement also highlights the increasing demand for lower-carbon LNG, particularly in Asian markets, where governments and industries are prioritizing energy security while transitioning towards cleaner fuel sources. Japan, one of the world’s largest LNG importers, continues to seek stable supplies from trusted partners like ADNOC, particularly as it navigates post-nuclear energy policies and the global shift towards energy diversification.

What Infrastructure Developments Support ADNOC’s LNG Strategy?

To facilitate the supply of feedstock to the Ruwais LNG project, ADNOC Gas has awarded three contracts worth $2.1 billion for the development of key infrastructure. These contracts cover the construction of a liquefied natural gas pre-conditioning plant (LPP), transmission pipelines, and compression facilities—all of which are essential for ensuring a steady flow of natural gas to the Ruwais LNG facility.

The LPP and compression facilities will be integrated within ADNOC Gas’ Habshan 5 plant, which is part of one of the largest gas processing complexes in the world. The newly awarded transmission pipelines will connect the Habshan Complex to the Ruwais LNG plant, reinforcing ADNOC’s investment in a robust gas supply network.

With these infrastructure projects, ADNOC Gas is not only securing feedstock for Ruwais LNG but also expanding its processing capabilities, ensuring greater efficiency in natural gas production and distribution across domestic and international markets.

How Does ADNOC Gas Plan to Increase Its LNG Capacity?

ADNOC Gas is set to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost—estimated at approximately $5 billion—in the second half of 2028. This acquisition will significantly boost ADNOC Gas’ total LNG production capacity, bringing it from its current levels to approximately 15 mtpa once the Ruwais LNG plant is fully operational.

The expansion reflects ADNOC’s broader goal of becoming a major supplier in the global LNG market, particularly as natural gas plays an increasing role in the energy transition. By integrating advanced digital solutions, AI-driven analytics, and clean energy sources, ADNOC aims to set a new standard for LNG production in the Middle East.

What Impact Does ADNOC’s LNG Growth Have on Investors?

Investor confidence in ADNOC Gas has grown in parallel with its LNG expansion efforts. In February 2025, ADNOC successfully completed a marketed offering of 3.1 billion shares in ADNOC Gas to institutional investors, increasing the company’s free float. This strategic move aims to enhance liquidity and pave the way for inclusion in global equity indices, such as the Morgan Stanley Capital International (MSCI) Emerging Market Index and the Financial Times Stock Exchange (FTSE) Emerging Market Index.

Analysts suggest that ADNOC’s increased exposure to the international market, combined with its low-carbon LNG initiatives, makes it an attractive investment opportunity. As global demand for LNG continues to rise, particularly in Asia and Europe, ADNOC’s strong long-term agreements and infrastructure investments place it in a highly competitive position.

What Does This Deal Mean for the Future of LNG Supply?

The long-term Osaka Gas agreement is a strong indication of the growing demand for stable, lower-carbon LNG supplies. With energy security becoming a top priority for many nations, long-term contracts with reliable suppliers like ADNOC will play an increasingly important role in ensuring supply stability amid global energy market fluctuations.

For ADNOC, the successful development of Ruwais LNG will be a game-changer, positioning the company at the forefront of the low-carbon LNG industry while reinforcing its influence in key international energy markets. As the transition to cleaner energy sources accelerates, ADNOC’s strategic investments in LNG infrastructure and production will likely yield strong returns, benefiting both its shareholders and long-term industry partners.