ADNOC has announced the signing of an LNG sales and purchase agreement (SPA) for up to 0.8mn tonnes per year (tpy) to Japanese utility Osaka Gas. The contract, spanning 15 years, marks the first long-term deal between the two entities for the Ruwais LNG project, a significant development in ADNOC’s global expansion strategy within the LNG sector.

The Ruwais LNG project, poised to commence operations in 2028, will serve as the primary source of this supply. This latest agreement brings the total committed volume of the Ruwais plant to around 8mn tpy, out of its full capacity of 9.6mn tpy. This positions ADNOC favourably in the global LNG market, reinforcing its role as a leading provider of lower-carbon LNG.

In a press release on ADNOC’s website, Rashid Khalfan Al Mazrouei, senior vice president of marketing, was quoted as saying: “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.”

Osaka Gas, which will receive the LNG shipments at its ports and through its Singaporean subsidiary, OGEST, expressed satisfaction with the new arrangement.

Keiji Takemori, executive vice president of Osaka Gas, said: “The relationship between Abu Dhabi and our home base Osaka dates back to 1970. 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.”

The Ruwais LNG facility, located in Abu Dhabi's Al Ruwais Industrial City, will be the first in the Middle East and Africa to operate on clean energy, integrating artificial intelligence to enhance efficiency and minimise emissions. The project, set to double ADNOC Gas's LNG production capacity to around 15mn tpy, is expected to cost approximately $5bn.

In recent developments, ADNOC Gas completed a marketed offering of 3.1bn ordinary shares to institutional investors, advancing its strategy to enhance liquidity and diversify its shareholder base. Moreover, ADNOC Gas has signed a 14-year agreement with India's state-owned Indian Oil Corporation (IOC) for up to 1.2mn tpy of LNG, scheduled to commence deliveries in 2026.