ADNOC and Japanese firm shake hands on offtake deal, leaving 30% of Ruwais LNG production capacity up for grabs

Abu Dhabi National Oil Company (ADNOC) has signed a long-term heads of agreement (HOA) with Japan’s Osaka Gas for liquefied natural gas (LNG) supply mainly originating from its low-carbon Ruwais LNG project, currently under development.

Under the terms of the deal, ADNOC is set to deliver up to 0.8 million metric tonnes per annum (mmtpa) of LNG to the ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading (OGEST). The Japanese-UAE duo plans to conclude a detailed sale and purchase agreement in the coming months based on the terms of the HOA, which is said to be ADNOC’s first long-term LNG deal with a Japanese energy company since the early 1990s. 

“Osaka Gas is delighted to secure LNG from ADNOC, a reliable supplier in the Middle East. This contract with ADNOC will significantly enhance the stability of Osaka Gas’ LNG procurement. It will also strengthen the foundation of our stable energy supply to customers, transition to lower carbon energy, and acceleration toward our net zero target,” said Keiji Takemori, Osaka Gas Executive Vice President.

“These align with our goals in the Medium-Term Management Plan 2026: Connecting Ambitious Dreams, which we announced in March. We will continue working on the stable procurement, development, and supply of natural gas as a key transition fuel to achieve a carbon neutral future.”

The LNG will originate mainly from the Ruwais LNG project being developed in Al Ruwais Industrial City, Abu Dhabi, with the start of commercial operations expected in 2028. The project will comprise two 4.8mmtpa LNG liquefaction trains with a total capacity of 9.6mmtpa.

A limited notice to proceed (LNTP) for early engineering, procurement, and construction (EPC) activities for the project was issued in March, while the final investment decision (FID) was made in June. Furthermore, in July, ADNOC penned deals with energy majors BP, Mitsui & Co., Shell, and TotalEnergies, enabling each to get a 10% equity stake in Ruwais LNG, with ADNOC keeping 60%, subject to customary regulatory clearances.

ADNOC’s Senior Vice President of Marketing, Rashid Khalfan Al Mazrouei, noted: “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. This agreement further enhances ADNOC’s position as a reliable and responsible global energy provider and reflects our commitment to help meeting Japan’s growing energy needs with secure and sustainable energy solutions. The Ruwais LNG project supports our broader strategy to expand our global LNG footprint to enable the energy transition.” 

The Ruwais LNG plant is set to be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, aiming to be one of the lowest carbon intensity plants of its kind in the world. ADNOC plans to use artificial intelligence and the latest technologies to enhance safety, minimize emissions, and drive efficiency.

According to the UAE player, 70% of Ruwais LNG’s total production capacity is booked following other international deals for LNG from the future facility, including with China’s ENN Natural Gas, SEFE Marketing & Trading Singapore, and Germany’s EnBW Energie Baden-Württemberg (EnBW).