ADNOC signs 15-year Ruwais LNG supply deal with Japan's INPEX
ADNOC has signed a 15-year Sales and Purchase Agreement (SPA) with Japan’s largest exploration and production company, INPEX, for the supply of 1 million tonnes per annum (mtpa) of LNG from its Ruwais project.
The agreement was announced during the visit of H.E. Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Executive Chairman of XRG, to Japan, where he is leading a delegation for meetings with senior government officials and business leaders aimed at deepening bilateral energy cooperation.
The deal is the first long-term LNG supply agreement announced since ADNOC and XRG launched their integrated global LNG marketing and trading platform earlier this week.
Growing bilateral ties
The agreement also reinforces the strategic relationship between ADNOC and INPEX, which has been an upstream partner in Abu Dhabi for decades through participating interests in several offshore and onshore concessions. The supply deal supports INPEX Vision 2035, under which the Japanese company aims to expand and diversify its LNG portfolio to provide customers with greater supply flexibility.
The LNG will be sourced primarily from the Ruwais LNG project, currently under development in Al Ruwais Industrial City in Abu Dhabi. Commercial operations are expected to begin in 2028.
The project is a key component of ADNOC’s global LNG growth strategy. To date, around 90% of the facility’s planned 9.6 mtpa production capacity has already been committed to international customers through long-term agreements across Asia and Europe, underlining strong market demand for the project’s future output.
Once operational, the Ruwais LNG plant will become the first LNG export facility in the Middle East and Africa to operate using clean power.
ADNOC said the plant will be among the world’s lowest-carbon intensity LNG facilities, using AI and advanced digital technologies to improve operational efficiency, enhance safety, and reduce emissions.
The project consists of two liquefaction trains, each with a capacity of 4.8 mtpa, giving a combined production capacity of 9.6 mtpa.
“This SPA with INPEX marks the first long-term LNG agreement announced following the launch of ADNOC and XRG’s integrated global LNG marketing and trading platform, demonstrating how we are bringing more LNG molecules, greater market access and enhanced commercial flexibility to our customers,” said Nasser Al Muhairi, Acting CEO of ADNOC Downstream Industry, Marketing & Trading and Chairman of Ruwais LNG.
He said the agreement builds on ADNOC’s decades-long energy relationship with Japan while advancing the commercialisation of the Ruwais LNG project.
“As ADNOC and XRG target 47 mtpa 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 added.
ADNOC Gas announced in November 2024 that it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, estimated at approximately $5 billion, in 2028.
Upon completion, the acquisition would more than double ADNOC Gas’ operated LNG production capacity to around 15 mtpa.
