ADNOC signs LNG supply contract with Japan's Osaka Gas

Abu Dhabi National Oil Company announced on Thursday that it had signed an agreement for 15 years to supply Japan’s Osaka Gas liquefied gas from the Ruwais Project.

The agreement to supply LNG up to 0.8 mtpa is the fourth contract signed for the Ruwais LNG Project, where energy giants Shell, BP TotalEnergies, and Japan's Mitsui all have a 10% share.

ADNOC stated in a press release that the LNG will primarily come from the Ruwais LNG Project, which is due to be completed in 2028.

ADNOC, a state-owned company, has ambitious plans to develop the LNG and natural gas industries, which it sees as key pillars of future growth, alongside renewable energy and petrochemicals.

Qatar, one of the top LNG exporters in the world, and Saudi Arabia have similar ambitions.

ADNOC announced that the latest agreement involves LNG cargoes being shipped to Osaka Gas and Osaka Gas Energy Supply and Trading in Singapore, Osaka Gas' Singapore subsidiary.

Keiji Takemori, Osaka Gas' Executive Vice President, said that "ADNOC is a reliable supplier of LNG to Japan since nearly half a hundred years."

This new contract with a reliable LNG supplier will ensure that our customers have a steady energy supply.

Ruwais will have a capacity estimated at 9.6 mtpa. This is more than double the capacity of ADNOC, which stands at 15 mtpa. ADNOC reported that up to 8 mtpa of Ruwais' capacity has been committed by Asian and European buyers.

ADNOC Gas, a subsidiary of the parent company, said in November that it expected to purchase a 60% share in the Ruwais LNG Project from the parent in the second half 2028 for a cost estimated at $5 billion.

ADNOC raised $2.84bn last week from the sale of ADNOC Gas, which increased its free float up to 9%. Reporting by Yousef SABA; Editing and proofreading by Rachna Uppal

(source: Reuters)