ADNOC to Supply 0.8 MTPA LNG to Japan’s Osaka Gas

Marking another milestone in its global LNG expansion strategy, the state-owned Abu Dhabi National Oil Company (ADNOC) on Thursday announced that it has signed a Sales and Purchase Agreement (SPA) with Osaka Gas, one of Japan’s largest utility companies, for the supply of up to 0.8 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from ADNOC’s lower-carbon Ruwais LNG project.

The 15-year SPA converts a previous Heads of Agreement (HoA) into a definitive agreement and marks the first long-term LNG sales agreement between ADNOC and Osaka Gas. The LNG cargoes will be shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. (OGEST).

The LNG will be primarily sourced from the Ruwais LNG project, which is under development in Al Ruwais Industrial City, Abu Dhabi, and is scheduled to start commercial operations in 2028.

The SPA is the fourth signed for Ruwais LNG reinforcing the company’s position as a leading global supplier of lower-carbon LNG. To date, up to 8 MTPA of the Ruwais LNG project’s 9.6 MTPA production capacity has been committed to international buyers across Asia and Europe through long-term arrangements.

The Ruwais LNG plant will be the first LNG export facility in the Middle East and Africa (MEA) region to operate on clean power, making 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 and efficiency, minimise emissions and drive operational excellence.

UAE-Japan Energy Partnership

ADNOCs’ Senior Vice President for Marketing Rashid Khalfan Al Mazrouei said that the agreement with Osaka Gas reinforces their long-standing energy partnership with Japan and supports the company’s strategy to expand its global LNG footprint. Through ADNOC’s world-class Ruwais LNG project, the company will continue to provide more low carbon gas to meet growing global demand, fuel industries and power homes, he said.

Osaka Gas Executive Vice President Keiji Takemor said that the relationship between Abu Dhabi and their home base Osaka dates back to 1970, marked by the opening of the Abu Dhabi Pavilion at the Expo’70 in Osaka.

“This year, Osaka once again hosts the World Expo, and we are delighted to announce the signing of a long-term LNG SPA with ADNOC in this landmark year. ADNOC has been a reliable LNG supplier to Japan for nearly half a century. This new contract, with such a trusted LNG provider, will help ensure a stable energy supply for our customers,” he explained.

ADNOC to Acquire ADNOC Gas

ADNOC Gas announced in November 2024 that it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, estimated at around $5 billion, in the second half of 2028.

Upon completion, the project, comprising two 4.8 MTPA liquefaction trains with a combined capacity of 9.6 MTPA, will more than double ADNOC Gas’ existing operated LNG production capacity to around 15 MTPA.

As part of its broader strategy to enhance liquidity and diversify the shareholder base in ADNOC Gas, ADNOC successfully completed a marketed offering of 3.1 billion ordinary shares in ADNOC Gas to institutional investors a few days ago.

The move increased the free float to help provide a pathway towards inclusion in international indices, such as the Morgan Stanley Capital International (MSCI) Emerging Market Index and the Financial Times Stock Exchange (FTSE) Emerging Market Index.