ADNOC Signs Long-Term LNG Agreement with Japan's Osaka Gas for Ruwais Project
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ADNOC signs long-term heads of agreement with Osaka Gas for Ruwais LNG project
LNG supply agreement for 0.8mmtpa marks ADNOC's first long-term LNG deal with Japan's Osaka Gas To date ADNOC has secured LNG sales commitments for 70% of the project's total production capacity, reinforcing its position as a reliable global supplier of natural gas Abu Dhabi, UAE: 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). 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). Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing, said: "This landmark LNG agreement, our first long-term LNG deal with Osaka Gas, underscores the strong, long-standing energy partnership between the UAE and Japan. This agreement further enhances ADNOC's position as a reliable and responsible global energy provider and reflects our commitment to help meet Japan's energy needs with secure and sustainable energy solutions. The Ruwais LNG project supports our broader strategy to expand our global LNG footprint to enable the energy transition." 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. Keiji Takemori, Osaka Gas Executive Vice President, said: "Osaka Gas is delighted to secure LNG from ADNOC, a reliable and responsible global energy supplier. 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. We will continue working on the stable procurement, development and supply of natural gas as a key transition fuel." 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. 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. 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. About ADNOC ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC's objective is to maximize the value of the Emirate's vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates' economic growth and diversification. To find out more, visit: www.adnoc.ae For media inquiries, please contact: [email protected] About Osaka Gas Osaka Gas is a major Japanese gas utility based in Osaka, providing gas and electricity primarily to the country's western region. The company aims to reduce carbon emissions and achieve carbon neutrality across its corporate group (Daigas Group) by 2050, as the goals set in the Carbon Neutral Vision announced in 2021 and Energy Transition 2030 released in 2023. To realize this ambition, Osaka Gas promotes fuel conversion from coal to natural gas and pursues net zero solutions, including e-methane, a synthetic gas that can contribute to a seamless transition to a carbon-neutral future due to its compatibility with the existing LNG facilities and gas infrastructure. ADNOC Media Team Media Communications Department PO Box 898, Abu Dhabi, UAE [email protected] adnoc.ae ADNOC
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ADNOC signs long-term deal with Japan's Osaka Gas for Ruwais LNG project
ABU DHABI - 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). 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). Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing, said, "This landmark LNG agreement, our first long-term LNG deal with Osaka Gas, underscores the strong, long-standing energy partnership between the UAE and Japan. This agreement further enhances ADNOC's position as a reliable and responsible global energy provider and reflects our commitment to help meet Japan's energy needs with secure and sustainable energy solutions. The Ruwais LNG project supports our broader strategy to expand our global LNG footprint to enable the energy transition." 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. Keiji Takemori, Osaka Gas Executive Vice President, said, "Osaka Gas is delighted to secure LNG from ADNOC, a reliable and responsible global energy supplier. 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. We will continue working on the stable procurement, development and supply of natural gas as a key transition fuel." 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, minimise emissions and drive efficiency. 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. 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.
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ADNOC inks initial agreement for LNG delivery with Osaka Gas
Image credit: Christophe Viseux/ Getty Images Abu Dhabi National Oil Company (ADNOC) said on Tuesday that it has signed a long-term heads of agreement (HOA) with Japanese utilities provider Osaka Gas for the delivery of up to 0.8 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG). The contract will see LNG cargoes shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading. "The agreement further enhances ADNOC's position as a reliable and responsible global energy provider and reflects our commitment to help meet Japan's energy needs with secure and sustainable energy solutions," said Rashid Khalfan Al Mazrouei, ADNOC senior vice president of marketing. The deal marks the first long-term LNG deal between Osaka Gas and ADNOC. Under the agreement, the contract is expected to start in the late 2020s. 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. ADNOC's global ambitions The LNG will be primarily sourced from the Ruwais LNG project, which is under development in Al Ruwais Industrial City, Al Dhafra, in Abu Dhabi. ADNOC said, in a statement, that the project is expected to start commercial operations in 2028 as the first LNG export facility in the Middle East and North Africa region to run on clean power. The facility will leverage artificial intelligence and innovative technologies to enhance safety, minimise emissions and drive efficiency. "The Ruwais LNG project supports our broader strategy to expand our global LNG footprint to enable the energy transition," said Al Mazrouei. 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. Meanwhile, the deal with Osaka Gas follows several LNG sales agreements, including those with Japan Petroleum Exploration Company, TotalEnergies Gas and Power, Indian Oil Corporation (IOCL), PetroChina International and GAIL India. ADNOC continues to invest domestically to position itself to meet both local and international demand for natural gas. The state-owned energy giant plans to more than double its LNG production capacity to meet rising global demand through its new project. Earlier in July, bp, Mitsui & Co., Shell and TotalEnergies acquired a combined 40 per cent stake in the Ruwais LNG project as the global demand for natural gas is expected to surge by more than 50 per cent by 2040. Read: ADNOC's Ruwais LNG sells 40% stake to Shell, Total, BP, Mitsui
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Abu Dhabi National Oil Company (ADNOC) has signed a long-term Heads of Agreement with Japan's Osaka Gas for LNG supply from the Ruwais project. This deal marks a significant step in ADNOC's global LNG expansion strategy.
ADNOC Secures Long-Term LNG Deal with Osaka Gas
Abu Dhabi National Oil Company (ADNOC) has taken a significant step forward in its global LNG expansion strategy by signing a long-term Heads of Agreement (HOA) with Osaka Gas, one of Japan's largest utility companies. The agreement, announced on May 18, 2023, will see ADNOC supply liquefied natural gas (LNG) from its Ruwais project to Osaka Gas for a period of 25 years, starting from 2028
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.Strategic Importance of the Agreement
This deal is of strategic importance for both parties. For ADNOC, it represents a major milestone in its efforts to expand its global LNG footprint and capitalize on the growing demand for cleaner energy sources. The agreement aligns with ADNOC's 2030 strategy to develop a 9.6 million tonnes per annum (mtpa) LNG production facility in the Ruwais Industrial Complex
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.For Osaka Gas, the agreement ensures a stable, long-term supply of LNG, which is crucial for Japan's energy security. Japan, being the world's second-largest LNG importer, has been actively seeking to diversify its energy sources and secure long-term supply agreements
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.Details of the LNG Supply
Under the terms of the agreement, ADNOC will supply 0.75 million tonnes per annum of LNG to Osaka Gas. The deliveries are scheduled to commence in 2028, coinciding with the expected start of commercial operations at ADNOC's new Ruwais LNG facility
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.ADNOC's LNG Expansion Strategy
This agreement is part of ADNOC's broader strategy to expand its LNG production capacity. The company is investing in the development of the Ruwais LNG project, which aims to more than double ADNOC's LNG production capacity to meet the growing global demand for natural gas
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Environmental Considerations
The shift towards LNG aligns with global efforts to reduce carbon emissions. Natural gas, when used in place of coal for electricity generation, can help lower CO2 emissions by up to 50%. This makes LNG an attractive transition fuel as countries work towards their net-zero targets
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.Strengthening UAE-Japan Energy Relations
This agreement further strengthens the energy ties between the United Arab Emirates and Japan. It builds upon the long-standing partnership between the two countries in the energy sector, with Japan being a significant investor in Abu Dhabi's oil and gas industry
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.As global energy markets continue to evolve, long-term agreements like this one between ADNOC and Osaka Gas are likely to play a crucial role in shaping the future of international LNG trade and energy security.
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