Abu Dhabi National Oil Company (ADNOC) has announced that it has signed a long-term agreement with Japan's Osaka Gas Project.
According to Amac News: ADNOC's announcement states that it has signed this agreement for the Ruwais LNG project.
According to this agreement, Abu Dhabi National Oil Company is obliged to deliver up to 0.8 million tons per year (mmtpa) of liquefied natural gas to Osaka Gas, one of the largest utility companies in Japan.
The LNG is mainly sourced from ADNOC's Ruwais Low Carbon LNG project, which is currently located in Abu Dhabi's Al Ruwais Industrial City and is expected to begin commercial operations in 2028.
Under this agreement, LNG cargoes will be shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading Pte.
The contract with Osaka Gas is one of several long-term LNG sales commitments that ADNOC has signed with international partners for Ruwais LNG, bringing long-term sales commitments to 70% of the project's total production capacity.
The Ruwais LNG plant is the first LNG export facility in the Middle East and Africa region to run on clean energy, making it one of the lowest carbon intensive LNG plants in the world.
The facility uses artificial intelligence and the latest technologies to increase safety, minimize emissions and productivity.
The Ruwais LNG project consists of two LNG liquefaction trains with a capacity of 4.8 mmt/h with a total capacity of 9.6 mmt/h, which is more than double the UAE's LNG production capacity of about 15 mmt/h, as the company International creates its own LNG.
The deal, ADNOC's first long-term LNG deal with a Japanese energy company since the early 1990s, marks the company's renewed commitment to the Japanese market.
ADNOC and Osaka Gas will work together to enter into a detailed purchase and sale agreement based on the terms of the LNG contract in the coming months.