ABU DHABI - The Abu Dhabi National Oil Company (ADNOC) announced on Tuesday the signing of long-term heads of agreement with Osaka Gas, one of the largest utility companies in Japan, for the delivery of up to 0.8 million metric tonnes per annum (mmtpa) of liquefied natural gas.

The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi, and is expected to start commercial operations in 2028.

Under the agreement, LNG cargoes will be shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte Ltd (OGEST).

Rashid Khalfan Al Mazrouei, ADNOC senior vice-president, marketing, said, “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 meet Japan’s 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.”

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The agreement with Osaka Gas is one of several long-term LNG sales commitments ADNOC has signed with international partners for Ruwais LNG, which take the long-term sales commitments to 70 percent of the project’s total production capacity.

Keiji Takemori, Osaka Gas executive vice-president, said, “Osaka Gas is delighted to secure LNG from ADNOC, a reliable and responsible global energy supplier. This agreement 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 towards our net zero target. We will continue working on the stable procurement, development and supply of natural gas as a key transition fuel.”

The Ruwais LNG plant is set to be the first LNG export facility in the Middle East and Africa region to run on clean power, making it one of the lowest-carbon intensity LNG plants in the world. The facility will leverage artificial intelligence and the latest technologies to enhance safety, minimise emissions and drive efficiency.

The Ruwais LNG project will consist of two 4.8-mmtpa LNG liquefaction trains with a total capacity of 9.6 mmtpa, more than doubling ADNOC’s existing UAE LNG production capacity to around 15 mmtpa, as the company builds its international LNG portfolio.

The agreement, ADNOC’s first long-term LNG deal with a Japanese energy company since the early 1990s, demonstrates the company’s renewed commitment to the Japanese market.

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ADNOC and Osaka Gas will work together to conclude a detailed sale and purchase agreement in the coming months based on the terms of the LNG agreement.