Under the agreement, 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.
ADNOC announced today the signing of a long-term Heads of Agreement (LNG agreement) with Osaka Gas, one of the largest utility companies in Japan, for the delivery of up to 0.8 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG).
ADNOC’s lower-carbon
The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi, and is expected to start commercial operations in 2028. Under the agreement, 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).
International partners
The agreement with Osaka Gas is one of several long-term LNG sales commitments ADNOC has signed with international partners for Ruwais LNG, which take the long-term sales commitments to 70% of the project’s total production capacity.
First LNG export
The Ruwais LNG plant is set to be the first LNG export facility in the Middle East and Africa region to run 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, minimize emissions and drive efficiency.
Ruwais LNG
The Ruwais LNG project will consist of two 4.8mmtpa LNG liquefaction trains with a total capacity of 9.6mmtpa, more than doubling ADNOC’s existing UAE LNG production capacity to around 15mmtpa, as the company builds its international LNG portfolio.
Japanese market
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.
Terms of the HOA
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.
It is noteworthy that Osaka Gas and ADNOC will work together to conclude a detailed sale and purchase agreement in the coming months based on the terms of the HOA
Osaka Gas is one of Japan’s biggest LNG buyers, handling 11.5 million tons of the super-chilled fuel in the financial year ending March 31, including 6.12 million tons for its own consumption.
