LNG supply agreement marks ADNOC’s first long-term LNG deal with Japan’s Osaka Gas
ADNOC has announced 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).
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).
Broader strategy
“The Ruwais LNG project supports our broader strategy to expand our global LNG footprint to enable the energy transition,” commented Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing.
“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,” remarked Keiji Takemori, Vice President, Osaka Gas.
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 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.
