ADNOC and Osaka Gas Seal Long-Term LNG Supply Agreement

ADNOC has formalized a long-term agreement with Japan's Osaka Gas to supply up to 0.8 million metric tons of Liquefied Natural Gas (LNG) annually. This strategic partnership underscores ADNOC's position as a global energy provider and strengthens its presence in the Asian market. The LNG will be predominantly sourced from ADNOC’s innovative lower-carbon Ruwais LNG project, which is under development in Al Ruwais Industrial City, Abu Dhabi, and is projected to commence commercial operations by 2028. This project represents a significant advancement in ADNOC’s efforts to provide more sustainable LNG solutions.

According to the agreement, the LNG cargoes will be dispatched to designated ports for Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. (OGEST). The agreement marks ADNOC’s first long-term LNG deal with a Japanese energy company since the early 1990s, underscoring the company’s renewed focus on the Japanese market.

The agreement with Osaka Gas is part of ADNOC’s broader strategy to secure long-term LNG sales commitments for the Ruwais LNG project. This deal, among several international partnerships, raises the total long-term sales commitments to 70% of the project's full production capacity.

Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President of Marketing, praised the new long-term LNG agreement with Osaka Gas, marking it as a significant milestone in the UAE-Japan energy partnership. He noted that this deal reinforces ADNOC's reputation as a dependable global energy provider and demonstrates the company's dedication to meeting Japan’s energy needs with secure and sustainable solutions. Al Mazrouei highlighted that the Ruwais LNG project is a key component of ADNOC’s strategy to broaden its global LNG presence and support the global energy transition.

Keiji Takemori, Executive Vice President of Osaka Gas, expressed enthusiasm about securing LNG from ADNOC, emphasizing that the agreement will greatly enhance the stability of their LNG procurement. He highlighted that this partnership not only strengthens Osaka Gas's ability to provide a stable energy supply to its customers but also supports its transition to lower-carbon energy and progress towards its net-zero target. Takemori reaffirmed Osaka Gas's commitment to the stable procurement, development, and supply of natural gas as a crucial transition fuel in their energy strategy.

The Ruwais LNG plant will be the first LNG export facility in the Middle East and Africa region to operate on clean power, positioning it as one of the lowest-carbon intensity LNG plants globally. Utilizing artificial intelligence and cutting-edge technologies, the facility aims to enhance safety, minimize emissions, and drive operational efficiency. The Ruwais LNG project will feature two 4.8 million tonnes per annum (mmtpa) LNG liquefaction trains, totaling 9.6 mmtpa in capacity. This expansion will more than double ADNOC’s existing LNG production capacity in the UAE to approximately 15 mmtpa, significantly advancing the company's international LNG portfolio.