ADNOC and Petronas Finalize 15-year LNG Supply Agreement from Ruwais

SEATTLE (Oil Monster): ADNOC has signed a 15-year Sales and Purchase Agreement (SPA) with Malaysia’s PETRONAS for the supply of 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from its Ruwais LNG project. This agreement formalizes a previous Heads of Agreement between the two companies, marking a significant step in ADNOC’s commitment to delivering lower-carbon energy solutions. LNG deliveries are set to begin in 2028, coinciding with the start of commercial operations at the Ruwais facility, located in Al Ruwais Industrial City, Abu Dhabi.

The Ruwais LNG project, currently under development, has already secured commitments for over 8 mtpa of its production capacity through long-term agreements with international customers. The facility will feature two liquefaction trains, each with a capacity of 4.8 mtpa, bringing its total production capacity to 9.6 mtpa. This will more than double ADNOC Gas’ existing LNG production capacity to approximately 15 mtpa once operational.

Fatema Al Nuaimi, ADNOC’s Executive Vice President of Downstream Business Management, highlighted the importance of the partnership, stating, “Natural gas plays a critical role in meeting the world’s energy needs, and we are proud to partner with PETRONAS to deliver lower-carbon LNG through this landmark agreement. This milestone further underscores ADNOC’s role as a reliable global energy supplier and supports growing demand in Asia for cleaner, more sustainable energy solutions.”

The project also represents a substantial investment in clean energy innovation. It will be the first LNG export facility in the Middle East and Africa region powered by clean energy, making it one of the lowest-carbon intensity LNG plants worldwide. Advanced technologies, including artificial intelligence, will be utilized to enhance safety, minimize emissions, and improve operational efficiency.

PETRONAS Vice President of LNG Marketing & Trading, Shamsairi Ibrahim, emphasized the collaboration’s significance, stating, “This partnership strengthens PETRONAS’ business with the UAE, complements our upstream activities, and reinforces the strategic economic relationship between Malaysia and the UAE. It enhances supply security, meets Malaysia’s domestic energy needs, and aligns with sustainable development and energy transition goals.”

In addition, ADNOC Gas announced in late 2024 its intention to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, an investment valued at approximately $5 billion. The acquisition is expected to be completed by the second half of 2028, solidifying ADNOC’s position as a leader in LNG production and export.

This agreement reflects a shared commitment between ADNOC and PETRONAS to advancing sustainable energy solutions while fostering economic ties and supporting the global energy transition.

Courtesy: www.chemanalyst.com