ADNOC signs deal with Osaka Gas for Ruwais LNG

ABU DHABI, August 6, 2024 – ADNOC has signed a long-term heads of agreement with Japan’s Osaka Gas for the supply of LNG from the Ruwais LNG plant, the Emirati company said on Tuesday.

Under the deal, ADNOC will supply 800,000 tonnes per year of LNG to the Japanese utility company. The tenure of the supply was not specified.

The Ruwais LNG project is expected to begin operations in 2028. With the new deal, ADNOC has now secured offtakers for 70% of the plant’s projected production.

Located in Abu Dhabi’s Al Ruwais Industrial City, the project will consist of two 4.8-million-tpy natural gas liquefaction trains, which will more than double ADNOC’s existing LNG production capacity once operational. The plant will use electric-driven motors instead of conventional gas turbines and will be powered by clean energy.

In June, ADNOC reached an FID on the project and awarded USD 5.5 billion in EPC contracts to a joint venture of Technip Energies, JCG Corporation and NMDC Energy.

Tuesday’s deal is ADNOC’s first with Osaka Gas since the 1990s.

“This landmark LNG agreement, our first long-term LNG deal with Osaka Gas, underscores the strong, long-standing energy partnership between the UAE and Japan,” ADNOC senior vice-president for marketing Rashid Khalfan Al Mazrouei said.

“This agreement further enhances ADNOC’s position as a reliable and responsible global energy provider and reflects our commitment to help meet Japan’s energy needs with secure and sustainable energy solutions.”

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