UAE's ADNOC signs massive 15-year gas deal

Abu Dhabi National Oil Company (ADNOC) announced massive signs gas deal

Abu Dhabi National Oil Company (ADNOC) announced today the signing of a 15-year sale and purchase agreement with Inpex Corporation (INPEX) to supply 1 million metric tons per year of liquefied natural gas from the Ruwais project.

The agreement was announced during a visit to Japan by Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, and Executive Chairman of XRG, where he is leading an ADNOC delegation to hold a number of meetings with senior government officials and Japanese business leaders, with the aim of strengthening the long-term energy partnership between the UAE and Japan, and building on six decades of cooperation based on trust.

Nasser Al Muhairi, Acting Chief Executive Officer of Refining, Manufacturing, Marketing and Trading at ADNOC and Chairman of Ruwais LNG, said that the sale and purchase agreement with INPEX is the first long-term LNG agreement following the launch of the integrated global LNG marketing and trading platform recently established by ADNOC and XRG, confirming efforts to provide more LNG shipments, expand market access and enhance commercial flexibility for customers.

He explained that the agreement is based on ADNOC’s decades-long partnership with Japan in the energy sector, and contributes to accelerating the marketing of the Ruwais LNG project’s production, and confirms the market’s confidence in the project.

He added that with ADNOC and XRG aiming to provide 47 million tons per year of marketable liquefied natural gas by 2035, the Ruwais LNG project will be a major source of reliable, flexible, and low-emission supplies for customers in Asia and around the world.

The liquefied natural gas will be supplied mainly from the Ruwais project, which is being developed in the Ruwais Industrial City in Abu Dhabi and is scheduled to begin commercial operations in 2028.

The sale and purchase agreement represents a new phase in ADNOC’s global expansion strategy in the liquefied natural gas sector, and reinforces the company’s position as a leading global supplier of low-carbon LNG.

To date, 90% of the Ruwais LNG project’s production capacity of 9.6 million tons per year has been committed to selling to international buyers in Asia and Europe under long-term agreements.

The Ruwais project will be the first liquefied natural gas export facility in the Middle East and North Africa region to operate using clean electricity, making it one of the least carbon-intensive liquefied natural gas facilities in the world.

The facility will employ artificial intelligence and advanced technology to enhance safety standards, increase efficiency, reduce emissions, and achieve operational excellence.