ADNOC Scores 15-Year Deal to Supply 1 MMtpa of LNG to INPEX
Abu Dhabi National Oil Co PJSC (ADNOC) has signed an agreement to supply one million metric tons per annum (MMtpa) of liquefied natural gas (LNG) for 15 years to INPEX Corp.
The bulk of the LNG will come from the under-construction Ruwais LNG in the United Arab Emirates, ADNOC said in a statement. "To date, 90 percent of the Ruwais LNG project’s 9.6 mtpa [million metric tons per annum] production capacity has been committed to international buyers across Asia and Europe through long-term arrangements", ADNOC said.
Nearly 23 percent of the project's capacity has been offtaken by Japanese customers, ADNOC said.
"As outlined in INPEX Vision 2035 announced in February 2025, INPEX aims to strengthen its LNG portfolio and supply LNG more flexibly to complement the LNG supply from its projects", the Japanese energy company said separately. "The SPA [sale and purchase agreement] aligns with this initiative and represents an important development toward achieving the aim".
The agreement, signed during a visit by UAE Industry and Advanced Technology Minister and ADNOC chief executive Sultan Al Jaber to Japan, "builds on ADNOC’s decades-long energy partnership with Japan, advances the commercialization of Ruwais LNG and reinforces strong market confidence in the project", ADNOC said.
ADNOC said this is its first contract to supply LNG since it launched a unified platform for its LNG marketing and trading activities.
Targeting 47 MMtpa in marketed volumes by 2036, the platform combines the marketing activities of ADNOC Gas PLC and ADNOC international investment arm XRG PJSC with the trading activities of ADNOC Trading Ltd, ADNOC said Monday.
"Designed to enhance flexibility and shipping optionality, the move supports ADNOC Gas' expanding LNG portfolio, including Ruwais LNG, and XRG's international gas and infrastructure growth, while strengthening customer access globally", ADNOC said, adding the platform builds on its five decades of supplying LNG.
Ruwais LNG, with two 4.8-MMtpa trains, will more than double the UAE's LNG production capacity, according to ADNOC. It expects the project to start commercial operations 2028.
The consolidated LNG sales platform "will rank among the leading global LNG players, scaling up ADNOC and XRG's capacity to optimize a growing and diverse LNG portfolio and reinforce Abu Dhabi's position as a global energy trading center", ADNOC added.
"ADNOC Gas's existing commercial LNG arrangements remain unchanged, with the platform expected to create further upside for ADNOC Gas by supporting the optimization of its marketing activities for LNG volumes, including future Ruwais LNG volumes", it said.
"This is complemented by XRG's growing global LNG portfolio, supported by supply hubs and offices in London and Abu Dhabi.
"Long-term LNG marketing will be centralized under the combined platform, while ADNOC Trading will remain the counterparty for trading activities, with no change to existing customer interfaces. ADNOC Trading has built a significant third-party LNG portfolio within four years, and is ranked among the top global LNG financial traders, with offices in Abu Dhabi, Singapore and Geneva".
To contact the author, email jov.onsat@rigzone.com
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.