Abu Dhabi National Oil Company (ADNOC) has signed a Sales and Purchase Agreement (SPA) with Osaka Gas, one of Japan’s largest utility companies, for the supply of up to 0.8 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from its lower-carbon Ruwais LNG project.
The LNG will be primarily sourced from the Ruwais LNG project, which is under development in Al Ruwais Industrial City, Abu Dhabi, and is scheduled to start commercial operations in 2028.
The SPA is the fourth signed for Ruwais LNG. To date, up to 8 mtpa of the Ruwais LNG project’s 9.6 mtpa production capacity has been committed to international buyers across Asia and Europe through long-term arrangements.
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 (OGEST).
“This agreement with Osaka Gas reinforces our long-standing energy partnership with Japan and supports our strategy to expand our global LNG footprint. Through our world-class Ruwais LNG project, ADNOC will continue to provide more lower-carbon gas to meet growing global demand, fuel industries and power homes,” said Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing.
“The relationship between Abu Dhabi and our home base Osaka dates back to 1970, marked by the opening of the Abu Dhabi Pavilion at the Expo’70 in Osaka.
“This year, Osaka once again hosts the World Expo, and we are delighted to announce the signing of a long-term LNG Sale and Purchase Agreement with ADNOC in this landmark year. ADNOC has been a reliable LNG supplier to Japan for nearly half a century. This new contract, with such a trusted LNG provider, will help ensure a stable energy supply for our customers,” added Keiji Takemori, Osaka Gas Executive Vice President.
The Ruwais LNG plant will be the first LNG export facility in the Middle East and Africa region to operate 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 and efficiency, minimize emissions and drive operational excellence.
ADNOC Gas announced in November 2024 that it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, estimated at around $5 billion, in the second half of 2028. Upon completion, the project, comprising two 4.8 mtpa liquefaction trains with a combined capacity of 9.6 mtpa, will more than double ADNOC Gas’ existing operated LNG production capacity to around 15 mtpa.