Abu Dhabi National Oil Company (ADNOC) has entered into a long-term heads of agreement (HOA) with Osaka Gas for the supply of up to 800,000 tonnes per annum of LNG.
The LNG will be sourced from the lower-carbon Ruwais LNG project currently under development in Abu Dhabi, with expected commercial operations commencing in 2028.
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ADNOC said LNG cargoes will be shipped to Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading.
This deal follows a series of long-term LNG sales commitments ADNOC has secured for the Ruwais LNG project, which now account for 70% of the project’s total production capacity.
ADNOC senior vice-president of marketing Rashid Khalfan Al Mazrouei said: “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.”
Osaka Gas executive vice-president Keiji Takemori said: “Osaka Gas is delighted to secure LNG from ADNOC, a reliable and responsible global energy supplier. 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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By GlobalDataWith two 4.8mtpa LNG liquefaction trains, the Ruwais LNG project will boast a total capacity of 9.6mtpa.
Once operational, this will more than double ADNOC’s current LNG production capacity to approximately 15mtpa.
The agreement with Osaka Gas is the first long-term LNG deal with a Japanese energy company since the early 1990s.
Both companies are set to finalise a detailed sale and purchase agreement in the forthcoming months, based on the HOA terms.
Last month, ADNOC announced partnerships with BP, Mitsui, Shell and TotalEnergies, each acquiring a 10% stake in the Ruwais LNG project, while ADNOC retains a 60% majority stake.
