ADNOC has secured commitments for more than 90% of the Ruwais LNG project’s capacity.
Dubai: ADNOC has signed a 15-year agreement to supply Japan’s INPEX with 1 million tonnes of liquefied natural gas (LNG) annually from its Ruwais LNG project, strengthening Japan’s long-term energy security and expanding the UAE’s presence in global LNG markets.
The agreement lifts long-term commitments for the Ruwais LNG project to more than 90% of its planned 9.6 million tonnes per annum (mtpa) production 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 officials and business leaders.
Japan secures long-term LNG supply from the UAE
INPEX, Japan’s largest exploration and production company, is a long-standing ADNOC partner with participating interests in several offshore and onshore concessions in Abu Dhabi.
The agreement builds on more than six decades of energy cooperation between the UAE and Japan, with liquefied natural gas (LNG) playing an increasingly important role as Asian economies seek reliable supplies for power generation and industrial use.
“This agreement with INPEX is the first long-term LNG contract announced since the launch of ADNOC and XRG’s integrated global LNG marketing and trading platform. It demonstrates how we are delivering greater market access, enhanced commercial flexibility and a reliable LNG supply to our customers,” said Nasser Al Muhairi, Acting CEO of ADNOC Downstream Industry, Marketing & Trading and Chairman of Ruwais LNG.
“It also builds on ADNOC’s decades-long energy partnership with Japan, advances the commercialisation of the Ruwais LNG project and reinforces strong market confidence in its future. As ADNOC and XRG target a combined marketable LNG capacity of 47 million tonnes per annum by 2035, Ruwais LNG will play a key role in providing reliable, flexible and lower-carbon supplies to customers across Asia and beyond.”
Ruwais LNG set to begin operations in 2028
The LNG will be sourced primarily from the Ruwais LNG project, which is under development in Al Ruwais Industrial City in Abu Dhabi and is scheduled to begin commercial operations in 2028.
The Ruwais LNG plant will feature two liquefaction trains, each with a capacity of 4.8 million tonnes per annum (mtpa), giving the project a total production capacity of 9.6 mtpa. Once operational, the project is expected to more than double ADNOC Gas’ operated LNG production capacity to around 15 mtpa.
ADNOC has also said Ruwais LNG will be the first LNG export facility in the Middle East and Africa to operate on clean power. The plant will incorporate artificial intelligence and other advanced technologies to enhance safety, improve operational efficiency and reduce emissions.
ADNOC Gas acquisition planned
In November 2024, ADNOC Gas said it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, estimated at around $5 billion, in 2028.
The agreement with INPEX is the first long-term LNG contract announced since ADNOC and XRG launched their integrated global LNG marketing and trading platform. It supports the companies’ broader LNG expansion strategy, which targets a combined marketable LNG capacity of 47 mtpa by 2035.
