ADNOC inks UAE’s ‘largest LNG deal by volume’ with Chinese player

Against the backdrop of the U.S.–China trade war and other challenges affecting the global gas markets, the UAE-based Abu Dhabi National Oil Company (ADNOC) has signed a multi-year gas deal with ENN LNG (Singapore), a wholly owned subsidiary of China’s ENN Natural Gas (ENN NG), for liquefied natural gas (LNG), which will be sourced from a giant low-carbon LNG project, currently under development in the Middle East.

The sale and purchase agreement (SPA) enables ADNOC to supply approximately 1 million tons per annum (mtpa) of LNG, primarily sourced from its Ruwais LNG project, to ENN NG for 15 years. The Chinese company underlines that this SPA marks the former’s “largest LNG deal by volume ever signed between the UAE and a Chinese partner.”

Given the shifts in global gas supply dynamics and heightened price volatility, the firm describes the SPA as a major step forward in its strategy to enhance the resilience of its energy supply chain and diversify its global portfolio.

“During periods of widening oil-gas price spreads and volatile spot markets, the SPA will help ENN NG mitigate procurement cost fluctuations and bolster its ability to navigate global energy price uncertainties,” underscored the Chinese player.

“This not only strengthens the long-term security of natural gas supply in China, but also provides robust support for meeting the stable gas demand of residential, commercial, and industrial end-users.”

Moreover, the signing of the SPA is seen as a concrete step in ENN’s ongoing efforts to expand its resource portfolio and strengthen its capabilities in managing international energy resources, laying a foundation for the resource synergy envisioned under the company’s ongoing capital restructuring.

The Ruwais LNG project, which is being developed in Al Ruwais Industrial City, Abu Dhabi, is set to begin commercial operations in 2028, comprising two 4.8 mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa.

After a limited notice to proceed (LNTP) with early engineering, procurement, and construction (EPC) activities was issued in March 2024, the final investment decision (FID) was made in June 2024. The following month, ADNOC partnered with BP, Mitsui & Co., Shell, and TotalEnergies, allowing each to get a 10% equity stake in Ruwais LNG.

This project is expected to be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, as its goal is to be one of the lowest carbon intensity plants of its kind in the world, with artificial intelligence (AI) and other technologies enhancing safety, curbing emissions, and driving efficiency.

Multiple players have signed up for LNG supply from Ruwais LNG, including Japan’s Osaka Gas, Malaysia’s Petronas, and two German players, SEFE Marketing & Trading Singapore and EnBW Energie Baden-Württemberg (EnBW). In addition, ADNOC also recently penned such an SPA with Japan’s Mitsui & Co.

Upon becoming operational in 2028, the project will change hands, enabling ADNOC Gas to buy its parent company’s stake in Ruwais LNG.