ADNOC and Osaka Gas Forge Long-Term LNG Supply Agreement

February 27, 2025 746

LNG from the agreement will be delivered to Osaka Gas and its Singaporean trading arm, Osaka Gas Energy Supply and Trading.

ADNOC has solidified its global LNG ambitions and strengthened ties with Japan by signing a long-term sales agreement with Osaka Gas. This deal transforms a prior agreement into a firm 15-year contract, committing ADNOC to supply up to 0.8 million tonnes per annum (mtpa) of LNG from its low-carbon Ruwais LNG project, starting in 2028.

This marks the first long-term LNG agreement between the two companies, showcasing ADNOC's growing prominence in the international LNG market. The LNG will be delivered to Osaka Gas and its Singapore-based trading subsidiary, Osaka Gas Energy Supply and Trading (OGEST).

The Ruwais LNG project, located in Al Ruwais Industrial City, Abu Dhabi, is set to be a game-changer. With up to 8 mtpa of its 9.6 mtpa capacity already secured by buyers in Asia and Europe, the facility is poised to begin commercial operations in 2028.

"This agreement strengthens our enduring energy partnership with Japan and supports our strategy for expanding our global LNG footprint," said Rashid Khalfan Al Mazrouei, ADNOC SVP, Marketing. "Our world-class Ruwais LNG project will provide more low-carbon gas to meet global demand, fuel industries, and power homes."

Keiji Takemori, EVP of Osaka Gas, highlighted the historical connection between Abu Dhabi and Osaka, expressing delight in securing a long-term LNG supply from ADNOC, a trusted partner for nearly half a century. "This agreement will ensure a stable energy supply for our customers," he stated.

The Ruwais LNG plant will be the Middle East and Africa's first export facility powered by clean energy, making it one of the lowest-carbon intensity LNG plants worldwide. It will also leverage AI and advanced technologies to enhance safety, efficiency, and minimize emissions.

ADNOC Gas expects to acquire ADNOC's 60% stake in the Ruwais LNG project by H2 2028 for approximately $5 billion, more than doubling its existing LNG production capacity to around 15 mtpa upon the project's completion.

Further solidifying its market position, ADNOC completed a share offering in ADNOC Gas in February 2025, increasing its free float and paving the way for potential inclusion in major global indices.