The Abu Dhabi National Oil Company (ADNOC) announced today the signing of a long-term LNG agreement with Osaka Gas, one of Japan’s largest utility companies, for the delivery of up to 0.8 million metric tons per annum of liquefied natural gas.
ADNOC will primarily supply Osaka Gas with LNG from its lower-carbon Ruwais LNG project which is currently under development and is expected to start commercial operations in 2028. Under the agreement, ADNOC will ship LNG cargoes to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading.
“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,” stated Rashid Khalfan Al Mazrouei, ADNOC senior vice president, marketing.
Sales commitments for Ruwais LNG hit 70 percent
The LNG agreement is ADNOC’s first long-term LNG deal with Osaka Gas which underscores the strong, long-standing energy partnership between the UAE and Japan.
ADNOC and Osaka Gas’s agreement is also one of several long-term LNG sales commitments ADNOC has signed with international partners for Ruwais LNG. In addition, it takes the long-term sales commitments to 70 percent of the project’s total production capacity.
For his part, Keiji Takemori, Osaka Gas executive vice president, stated: “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.”
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Region’s first clean power LNG export facility
Upon completion, the Ruwais LNG plant will become the first LNG export facility in the Middle East and Africa region to run on clean power. This makes 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, minimize emissions, and drive efficiency.
It will consist of two 4.8 million metric tons per annum LNG liquefaction trains with a total capacity of 9.6 million metric tons per annum. Therefore, it will more than double ADNOC’s existing UAE LNG production capacity to around 15 million metric tons per annum as the company builds its international LNG portfolio.
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.
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