Adnoc, the Abu Dhabi National Oil Company, has inked a landmark 15-year Sales and Purchase Agreement (SPA) with Osaka Gas, a major Japanese utility company. This deal solidifies Adnoc’s position as a leading global supplier of lower-carbon liquefied natural gas (LNG). The agreement entails the supply of up to 0.8 million tonnes per annum (mtpa) of LNG from Adnoc’s innovative Ruwais LNG project, set to commence operations in 2028.

This SPA marks a significant milestone in Adnoc’s global LNG expansion strategy, converting a previous Heads of Agreement into a definitive contract. It represents the first long-term LNG sales agreement between the two companies, strengthening the energy partnership between the UAE and Japan. The Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi, has already committed up to 8 mtpa of its 9.6 mtpa production capacity to international buyers across Asia and Europe.

The agreement showcases Adnoc’s commitment to meeting growing global demand for cleaner energy sources. The Ruwais LNG plant is poised to become a pioneer in the Middle East and Africa region, operating on clean power and boasting one of the lowest carbon intensity profiles worldwide. Leveraging cutting-edge technologies and artificial intelligence, the facility aims to enhance safety, efficiency, and operational excellence while minimizing emissions.

Under the terms of the agreement, LNG cargoes will be delivered to Osaka Gas’s destination ports and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte. Ltd. (OGEST). This arrangement ensures a stable energy supply for Osaka Gas’s customers, building upon Adnoc’s nearly half-century-long track record as a reliable LNG supplier to Japan.