ADNOC has signed a long-term Sales and Purchase Agreement with Osaka Gas, a major Japanese utility company. This agreement, which covers the supply of up to 0.8 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from ADNOC’s Ruwais LNG project, will last for 15 years. It marks the first long-term LNG sales agreement between ADNOC and Osaka Gas, strengthening their longstanding energy partnership

The LNG will mainly come from the Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi, and is expected to commence commercial operations in 2028. The new SPA is a significant milestone in ADNOC’s global LNG expansion strategy, contributing to the company’s efforts to position itself as a leading supplier of lower-carbon LNG. As of now, 8 mtpa of the Ruwais LNG project’s total capacity of 9.6 mtpa has been contracted to international customers across Asia and Europe.

Rashid Khalfan Al Mazrouei, ADNOC’s Senior Vice President for Marketing, stated that this agreement reinforces their long-standing partnership with Japan and supports ADNOC’s strategy to expand its global LNG footprint. He emphasized that ADNOC aims to provide more lower-carbon gas to meet the increasing global demand for energy, supporting both industries and residential needs.

The agreement also outlines that LNG cargoes will be delivered to Osaka Gas and its subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. (OGEST) in Singapore. Keiji Takemori, Executive Vice President of Osaka Gas, highlighted that their relationship with Abu Dhabi dates back to 1970, and this contract will ensure a stable energy supply for their customers in a pivotal year marked by the World Expo in Osaka.

The Ruwais LNG facility is set to be the first LNG export plant in the Middle East and Africa to operate on clean power, aiming for one of the lowest carbon intensity levels globally. The plant will utilize advanced technologies, including artificial intelligence, to enhance operational efficiency and minimize emissions.

In November 2024, ADNOC Gas announced plans to acquire ADNOC’s 60% stake in the Ruwais LNG project, at an estimated cost of around $5 billion, expected to be finalized in the second half of 2028. The completion of this project will boost ADNOC Gas’ LNG production capacity to approximately 15 mtpa, more than doubling its current output.

As part of its strategy to improve liquidity and diversify the shareholder base, ADNOC recently completed a marketed offering of 3.1 billion shares in ADNOC Gas to institutional investors, increasing the free float and positioning the company for potential inclusion in international indices like the MSCI Emerging Market Index.