ADNOC signs 15-year Japan LNG deal with Ruwais project above 90% booked

Dubai: ADNOC has signed a 15-year agreement to supply Japan’s INPEX with 1 million tonnes of liquefied natural gas a year from its Ruwais LNG project, giving Japan another long-term source of energy supply.

The deal takes long-term commitments for the Ruwais LNG project to more than 90% of its planned 9.6 million tonnes per annum capacity, with nearly 23% of the project’s output now committed to Japanese customers.

The sales and purchase agreement was announced during a visit to Japan by Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Managing Director and Group CEO of ADNOC, and Executive Chairman of XRG. He is leading a UAE delegation for meetings with senior government and business leaders in Japan.

INPEX is Japan’s largest exploration and production company and a long-standing ADNOC partner, with participating interests across several Abu Dhabi offshore and onshore concessions.

The agreement also builds on six decades of energy ties between the UAE and Japan, with LNG becoming a bigger part of that relationship as Asian economies seek reliable supply for power generation and industry.

“This SPA with INPEX marks the first long-term LNG agreement announced following the launch of ADNOC and XRG’s integrated global LNG marketing and trading platform, demonstrating how we are bringing more LNG molecules, greater market access and enhanced commercial flexibility to our customers," said Nasser Al Muhairi, Acting CEO of ADNOC Downstream Industry, Marketing & Trading, and Chairman of Ruwais LNG. "It builds on ADNOC’s decades-long energy partnership with Japan, advances the commercialization of Ruwais LNG and reinforces strong market confidence in the project. As ADNOC and XRG target 47 mtpa of combined marketable LNG by 2035, Ruwais LNG will be a key source of reliable, flexible and lower-carbon supply for customers in Asia and around the world.”

The LNG will be mainly sourced from the Ruwais LNG project, which is being developed in Al Ruwais Industrial City in Abu Dhabi and is scheduled to begin commercial operations in 2028.

The plant will have two liquefaction trains, each with capacity of 4.8 mtpa, giving the project total capacity of 9.6 mtpa. ADNOC has said the project will more than double ADNOC Gas’ operated LNG production capacity to around 15 mtpa once completed.

Ruwais LNG is also expected to be the first LNG export facility in the Middle East and Africa to operate on clean power. ADNOC said the facility will use artificial intelligence and other advanced technologies to improve safety, efficiency and emissions performance.

ADNOC Gas said in November 2024 that it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, estimated at around $5 billion, in 2028.

The INPEX agreement is the first long-term LNG deal announced after ADNOC and XRG launched their integrated global LNG marketing and trading platform. It adds to ADNOC’s wider LNG expansion strategy, with the company and XRG targeting 47 mtpa of combined marketable LNG by 2035.