Abu Dhabi National Oil Company (Adnoc) has signed a long-term heads of agreement with Osaka Gas 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 will be shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary Osaka Gas Energy Supply and Trading (Ogest).

“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," says Rashid Khalfan Al Mazrouei, senior vice president for marketing at Adnoc. "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.”

The agreement with Osaka Gas is one of several long-term LNG sales commitments Adnoc has signed with international partners for Ruwais LNG and takes the long-term sales commitments to 70% of the project’s total production capacity. 

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 world’s lowest-carbon intensity LNG plants. The facility will leverage artificial intelligence and the latest technologies to enhance safety, minimize 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 15mmtpa, as the company builds its international LNG portfolio.