ADNOC signed a 15-year sales and purchase agreement with INPEX CORPORATION to supply 1 million tonnes per year of liquefied natural gas from the Ruwais LNG project in Abu Dhabi. The contract strengthens the energy relationship between the United Arab Emirates and Japan and adds commercial backing to one of the most significant LNG plants under development in the region.
The agreement was announced during the visit to Japan by Sultan Al Jaber, Minister of Industry and Advanced Technology of the United Arab Emirates, Managing Director and Group CEO of ADNOC and Executive Chairman of XRG. During the agenda, the Emirati delegation held meetings with Japanese government and business representatives to expand an energy cooperation that already spans six decades.
Ruwais LNG moves forward with new long-term contracts
The liquefied natural gas will come mainly from the Ruwais LNG project, currently under development in Al Ruwais Industrial City. The facility is scheduled to start commercial operations in 2028 and will have two liquefaction trains of 4.8 million tonnes per year each.
With a combined capacity of 9.6 million tonnes per year, the plant will more than double the LNG production capacity operated by ADNOC Gas to approximately 15 million tonnes per year. Likewise, the project consolidates ADNOC’s strategy to expand its presence in the international LNG market.
So far, 90% of Ruwais LNG’s production capacity is already committed to international buyers in Asia and Europe through long-term agreements. This level of early contracting demonstrates market confidence in the project and improves commercial visibility ahead of start-up.
INPEX strengthens its LNG portfolio
For INPEX, the agreement aligns with its Vision 2035, announced in February 2025, which aims to strengthen its LNG portfolio and improve supply flexibility. The Japanese company, considered Japan’s largest exploration and production company, also maintains a long-standing relationship with ADNOC in Abu Dhabi’s upstream sector.
In addition, INPEX participates in several onshore and offshore concessions in Abu Dhabi, making this new contract a natural extension of its cooperation with the Emirati group. In an Asian market seeking energy security and flexible contracts, supply from Ruwais LNG provides an additional source to complement its own projects.
An LNG plant with lower carbon intensity
Ruwais LNG will be the first LNG export facility in the Middle East and Africa to run on clean energy. This feature will reduce the carbon intensity of the liquefaction process and position the plant among the lowest-emitting LNG facilities of its kind.
In addition, the plant will incorporate artificial intelligence and advanced technologies to improve safety, optimize operational efficiency, and reduce emissions. For ADNOC, this combination of scale, digitalization, and lower carbon intensity will be key to meeting global demand for liquefied natural gas with greater commercial flexibility.
ADNOC and XRG target 47 mtpa of marketable LNG
The agreement with INPEX also follows the launch of ADNOC and XRG’s integrated global LNG marketing and trading platform. According to the company, this structure will enable the offering of more LNG volumes, greater market access, and more flexible commercial terms for international customers.
ADNOC and XRG aim to reach 47 million tonnes per year of combined marketable LNG by 2035. Under that plan, Ruwais LNG will be a strategic source of supply for Asia, Europe, and other markets seeking long-term contracts with a lower carbon footprint.
ADNOC Gas expects to acquire 60% of the project
In November 2024, ADNOC Gas announced that it expects to acquire ADNOC’s 60% stake in Ruwais LNG for an estimated value of around $5 billion in 2028. The transaction is planned for when the project is completed and able to add new capacity to the company’s portfolio.
With this new SPA, ADNOC adds another milestone to its global LNG expansion strategy and reinforces Ruwais LNG’s position as a central pillar of its growth in low-emissions liquefied natural gas.
Source and photo: ADNOC
