On Tuesday, the Abu Dhabi National Oil Company announced that it has entered into a long-term heads of agreement with Osaka Gas, one of Japan's largest utility companies, for the supply of up to 0.8 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG). According to the agreement, LNG shipments will be delivered to the ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. The LNG will mainly be sourced from Adnoc's lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi, and slated to commence commercial operations in 2028.
Rashid Khalfan Al Mazrouei, Adnoc's senior vice-president of marketing, highlighted that this significant LNG agreement, marking Adnoc's first long-term LNG deal with Osaka Gas, reinforces the robust, enduring energy partnership between the UAE and Japan. "This agreement bolsters Adnoc's status as a dependable and accountable global energy provider and underscores our dedication to meeting Japan's energy requirements with secure and sustainable solutions. The Ruwais LNG project aligns with our broader strategy to expand our global LNG presence to facilitate the energy transition," he stated.
The oil major revealed in a statement that the agreement with Osaka Gas is among several long-term LNG sales commitments it has secured with international partners for the Ruwais LNG project, which account for 70 percent of the project's total production capacity. "Osaka Gas is pleased to secure LNG from Adnoc, a reliable and responsible global energy supplier. This agreement will notably enhance the stability of Osaka Gas' LNG procurement. It will also fortify the foundation of our stable energy supply to customers, transition to lower carbon energy, and expedite our journey towards our net zero target. We will persist in working on the stable procurement, development, and supply of natural gas as a pivotal transition fuel," said Keiji Takemori, Osaka Gas executive vice-president.
The Ruwais LNG plant is poised to become the first LNG export facility in the Middle East and Africa region to operate on clean power, positioning it as one of the world's lowest-carbon-intensity LNG plants. The facility will utilize artificial intelligence and cutting-edge technologies to enhance safety, minimize emissions, and boost efficiency. The Ruwais LNG project will include two 4.8mmtpa LNG liquefaction trains with a combined capacity of 9.6mmtpa, more than doubling Adnoc's existing UAE LNG production capacity to approximately 15mmtpa, as the company expands its international LNG portfolio. This agreement, Adnoc's first long-term LNG deal with a Japanese energy company since the early 1990s, signifies the company's renewed commitment to the Japanese market. Both companies will collaborate to finalize a detailed sale and purchase agreement in the upcoming months based on the terms of the LNG agreement.
