ADNOC Signs 15-Year Agreement With Shell For LNG Supply To Ruwais Project

Abu Dhabi National Oil Company (ADNOC) has signed a 15-year Sales and Purchase Agreement (SPA) with Shell International Trading Middle East Limited FZE, a wholly owned subsidiary of Shell plc, for the supply of up to 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG).

The agreement, signed during the ongoing ADIPEC event, marks ADNOC’s first long-term LNG sales contract with Shell and the eighth long-term offtake agreement secured for the Ruwais LNG Project.

This deal converts a previous Heads of Agreement into a definitive contract and represents a major milestone in ADNOC’s efforts to accelerate the commercialization of the Ruwais LNG Project.

With this latest signing, more than 8 mtpa of the project’s planned 9.6 mtpa capacity is now secured through long-term agreements with customers across Asia and Europe—just 16 months after the project’s Final Investment Decision (FID) in July 2024.

Fatema Al Nuaimi, CEO of ADNOC Gas, said: “This agreement with Shell marks a significant milestone that reinforces ADNOC’s position as a reliable global supplier of lower-carbon LNG. Securing over 80% of Ruwais LNG’s capacity in just over a year from FID is a remarkable achievement that sets a new benchmark for large-scale LNG projects globally.

While the industry can take up to four or five years to market such volumes, Ruwais is advancing at record pace. In parallel, construction, contractor mobilization, and site works are all on track for commissioning by the end of 2028.”

The LNG will be primarily sourced from the Ruwais LNG Project, currently under development in Al Ruwais Industrial City, Abu Dhabi. Shell holds a 10% equity stake in the project through its subsidiary, Shell Overseas Holdings Limited.

Tom Summers, Executive Vice President of Shell LNG Marketing and Trading, said: “Shell’s trusted partnership with ADNOC dates back more than 50 years, and today we share a vision of strengthening global energy security through strategic collaboration. This agreement is a significant milestone in our partnership with ADNOC and supports Shell’s strategy of expanding our LNG portfolio.”

The Ruwais LNG plant will be the first LNG export facility in the Middle East and Africa to operate on clean power, making it one of the lowest-carbon-intensity LNG projects in the world. The plant will also leverage artificial intelligence (AI) and advanced technologies to enhance safety, operational efficiency, and emissions performance.

With two liquefaction trains of 4.8 mtpa each, the facility will more than double ADNOC Gas’s existing LNG production capacity to approximately 15 mtpa, supporting ADNOC’s strategy to expand its LNG portfolio to meet rising global demand.