ADNOC Signed Long-Term SPA with Osaka Gas

SEATTLE (Oil Monster): The Abu Dhabi National Oil Company (ADNOC) announced that it has entered into a sales and purchase agreement (SPA) with leading Japanese utility company Osaka Gas towards supply of liquefied natural gas (LNG) from its Ruwais LNG project. The 15-year SPA finalizes the previous heads of agreement into a definitive agreement. The first long-term LNG sales agreement between ADNOC and Osaka Gas is towards supply of up to 0.8 million tpy of LNG.

According to news release by ADNOC, the LNG will be primarily sourced from the Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi, which is scheduled to commence production in 2028.The Ruwais LNG project has an estimated production capacity of 9.6 million tpy, out of which ADNOC has already committed up to 8 million tpy to international buyers.

Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing noted that the agreement reinforces the company’s long-standing energy partnership with Japan and in alignment with its strategy to expand its global LNG footprint.

It must be noted that Ruwais LNG plant is one of the lowest carbon intensity LNG plants in the world.