ADNOC Signs LNG HoA with Japan's Osaka Gas

ADNOC on August 6 announced a long-term heads of agreement with Japan’s Osaka Gas for the delivery of up to 0.8mn tonnes/year of LNG. The LNG will primarily come from ADNOC’s Ruwais LNG project, currently under development in Al Ruwais Industrial City and expected to begin commercial operations in 2028.

The LNG cargoes will be shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading.

This agreement with Osaka Gas is part of several long-term LNG sales commitments ADNOC has secured with international partners for Ruwais LNG, which now cover 70% of the project’s total production capacity. Upon completion, the project will feature two LNG liquefaction trains, each with a capacity of 4.8mn tonnes/year, totalling 9.6mn tonnes/year. This expansion is expected to more than double ADNOC's LNG production capacity, increasing it from 6mn tonnes/year to approximately 15mn tonnes/year.

“The agreement, ADNOC’s first long-term LNG deal with a Japanese energy company since the early 1990s, demonstrates the company’s renewed commitment to the Japanese market,” ADNOC stated. “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.”

In addition, BP, Mitsui, Shell, and TotalEnergies each recently decided to buy a 10% stake in the Ruwais LNG project.