ADNOC Signs 15-Year LNG Supply Deal With Japan’s INPEX

Abu Dhabi National Oil Company (ADNOC) has signed a 15-year sales and purchase agreement with Japan’s INPEX Corp to supply 1 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from its Ruwais LNG project.

ADNOC said the agreement was signed during a high-level visit to Japan led by Sultan Al Jaber, the United Arab Emirates’ Minister of Industry and Advanced Technology, ADNOC’s Managing Director and Group Chief Executive Officer, and Executive Chairman of XRG.

Nasser Al Muhairi, Acting Chief Executive Officer of ADNOC Downstream Industry, Marketing and Trading and Chairman of Ruwais LNG, said the deal was the first long-term LNG supply agreement announced since the launch of ADNOC and XRG’s integrated global LNG marketing and trading platform.

He said the agreement builds on ADNOC’s long-standing energy partnership with Japan and supports the commercialisation of the Ruwais LNG project.

“As ADNOC and XRG target 47 million tonnes per annum 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,” Al Muhairi said.

ADNOC said the agreement also strengthens its long-standing relationship with INPEX, which holds interests in several of Abu Dhabi’s offshore and onshore oil and gas concessions.

The LNG will be supplied primarily from the Ruwais LNG project, which is under development in Al Ruwais Industrial City, Abu Dhabi. The project is expected to begin commercial operations in 2028.

ADNOC said about 90% of the project’s planned production capacity of 9.6 mtpa has already been committed to customers in Asia and Europe under long-term agreements.

The company said the Ruwais LNG facility will be the first LNG export plant in the Middle East and Africa to operate on clean power. It added that the project will use artificial intelligence and other advanced technologies to improve operational efficiency, enhance safety and reduce emissions.

In November 2024, ADNOC Gas said it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, estimated at about $5 billion, in 2028. Once completed, the project, comprising two liquefaction trains with a combined capacity of 9.6 mtpa, is expected to increase ADNOC Gas’ operated LNG production capacity to about 15 mtpa.