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Adnoc’s first long-term LNG agreement with Japan’s Osaka Gas: Abu Dhabi National Oil Company (Adnoc) signed a long-term heads of agreement with Japan’s Osaka Gas to supply it with 0.8 mn metric tonnes of liquefied natural gas (LNG) per year, an Adnoc press release reads. The LNG will be sourced from Adnoc’s Ruwais LNG project in Abu Dhabi, which is set to go live in 2028. The agreement marks the first for Adnoc with a Japanese company since the early 1990s, it said.
What we know: The LNG will be delivered to Osaka Gas’ and its Singapore-based subsidiary Osaka Gas Energy Supply and Trading’s ports, though specifics on the contract’s duration and financial details were not disclosed. An Osaka spokesperson noted that the agreement will supplement Osaka’s expiring contracts and broaden its procurement sources, Reuters reports.
Adnoc and Osaka are set to finalize a detailed sale and purchase agreement in the coming months, according to a separate Osaka press release (pdf).
What they said: “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,” Osaka Gas Executive Vice President Keiji Takemori said.
REMEMBER- This is the latest in a string of long-term LNG agreements Adnoc secured for Ruwais: Adnoc has inked offtake agreements for 70% of Ruwais’ total production capacity. This includes annual deliveries of 1 mn metric tonnes to Shell and 0.6 mn tons to Mitsui, after Adnoc sold 10% stakes in the plant to both companies, alongside TotalEnergies and BP. Adnoc also signed 15-year agreements with China’s ENN Natural Gas and SEFE Marketing & Trading Singapore for 1 mn tons each per year, along with a similar agreement with Germany’s Energie Baden-Württemberg for 0.6 mn tons annually.
Refresher: The project is expected to more than double Adnoc’s LNG production capacity to 15 mn metric tons per annum from 6 mn tons. Adnoc has already reached the final investment decision for the project at an executive board committee meeting in June, and handed out USD 5.5 bn in engineering, procurement, and construction (EPC) contracts to a JV between engineering companies Technip Energies and JGC Corporation, and National Marine Dredging Company.
