Oil & Gas

The UAE has secured a new long-term deal to export liquefied natural gas (LNG) from the environmentally friendly Ruwais project, reinforcing Abu Dhabi's role in global energy markets. On August 6, 2024, ADNOC announced the signing of key terms for a long-term agreement with Osaka Gas, one of Japan's largest utility companies, to supply 0.8 million metric tons of LNG per year. This agreement is the sixth LNG export deal from the Ruwais project, which is expected to be operational by 2028, and marks ADNOC's first long-term LNG supply contract with a Japanese company since the early 1990s.

The deal involves the delivery of LNG to Osaka Gas and its subsidiary, Osaka Gas Power Supply and Trade BOE (OGEST), based in Singapore. Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC, emphasized that this agreement highlights the enduring energy partnership between the UAE and Japan, and ADNOC's commitment to providing safe and sustainable energy solutions. The deal also aligns with ADNOC's strategy to enhance its global LNG production footprint and contribute to the energy transition.

The Ruwais LNG project, once completed, will feature two liquefaction lines with a total capacity of 9.6 million metric tons per year, more than doubling ADNOC's LNG production capacity to around 15 million tons annually. It will be the first LNG export facility in the MENA region to operate using electricity generated from clean energy sources, making it one of the lowest carbon-intensive LNG facilities in the world. The project aims to strengthen ADNOC's global presence and support its efforts in the international LNG market.

In addition to the Osaka Gas agreement, ADNOC has recently secured several other long-term LNG sales agreements. These include contracts with Shell, Mitsui & Co., ENN LNG, SIVVI Trading and Marketing, and Energy Baden-Württemberg (EnBW). These agreements, collectively representing a significant portion of the Ruwais project's total production capacity, underscore ADNOC's commitment to expanding its international LNG portfolio and diversifying global energy supplies.