"ADNOC" Signed a long-term agreement with "Osaka Gas" Japanese Gas Supply
Abu Dhabi, 6 August, 2019 (WAM) — ADNOC announced today, Tuesday, the signing of the main terms of a long-term agreement (the Liquefied Natural Gas Agreement) to supply 0.8 million metric tons per annum of LNG with Osaka Gas, one of Japan’s largest public utility companies.
The shipments will be primarily from ADNOC’s low-emission Ruwais LNG project, currently under development in the Ruwais Industrial City in Abu Dhabi, and expected to begin commercial operations in 2028.
Under the agreement, the LNG will be shipped to the ports of Osaka Gas and its subsidiary Osaka Gas Energy Supply & Trading Pte Ltd (OGEST) based in Singapore.
Rashid Khalfan Al Mazrouei, Senior Vice President of Marketing at ADNOC, said: “Today’s historic agreement, which is the first long-term LNG supply deal with Osaka Gas, underscores the long-standing energy partnership between the UAE and Japan. It also reinforces ADNOC’s position as a reliable and responsible global energy supplier, and reflects our commitment to meeting Japan’s energy needs through safe and sustainable energy solutions. The Ruwais LNG project supports ADNOC’s overall strategy to expand its global LNG presence to support the energy transition.”
The agreement signed with Osaka Gas is one of several long-term LNG sales agreements from the Ruwais LNG project that ADNOC has signed with international partners, bringing the long-term gas sales commitments to 70% of the project’s total production capacity.
Keiji Takemori, Executive Vice President of Osaka Gas, said: “Osaka Gas is pleased to secure LNG supplies from ADNOC, a reliable and responsible global energy supplier. This agreement will significantly enhance Osaka Gas’ LNG procurement stability, support the company’s foundation to provide stable energy supplies to its customers, enable the transition to low-carbon energy, and accelerate the company’s efforts to achieve climate neutrality. We will continue to work to develop and ensure stable procurement and secure supplies of natural gas, which is an important transition fuel.”
The Ruwais LNG project will be the first LNG export facility of its kind in the MENA region to be powered by clean energy, making it one of the least carbon-intensive LNG facilities in the world. The project will employ artificial intelligence and the latest technologies to enhance safety, reduce emissions and increase efficiency.
Upon completion, the project will consist of two natural gas liquefaction trains, each with a production capacity of 4.8 million metric tons per year, for a total capacity of 9.6 million metric tons per year. It will contribute to raising ADNOC’s targeted production capacity of liquefied natural gas by more than double to reach about 15 million metric tons per year, as part of the company’s efforts to develop and expand its international business portfolio in the field of liquefied natural gas.
This is ADNOC’s first long-term LNG supply agreement with a Japanese energy company since the early 1990s, underscoring its commitment to meeting the needs of the Japanese market. Based on the terms of the agreement, ADNOC and Osaka Gas will work to conclude a detailed sales and purchase agreement in the coming months.
