Arab News Japan

Abu Dhabi National Oil Company (ADNOC) announced on Thursday a Sales and Purchase Agreement (SPA) with Osaka Gas, one of Japan’s largest utility companies.

The agreement, which ADNOC has signed, will be for the supply of up to 0.8 million tonnes per annum (mtpa) of liquefied natural gas (LNG) from ADNOC’s lower-carbon Ruwais LNG project.

According to the Emirates News Agency (WAM), the 15-year SPA converts a previous Heads of Agreement into a definitive agreement and marks the first long-term LNG sales agreement between ADNOC and Osaka Gas.

The LNG sourced from the Ruwais LNG project is scheduled to start commercial operations in 2028.

Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President of Marketing, said: “This agreement with Osaka Gas reinforces our long-standing energy partnership with Japan and supports our strategy to expand our global LNG footprint. Through our world-class Ruwais LNG project, ADNOC will continue to provide more lower-carbon gas to meet growing global demand, fuel industries and power homes.”

Under the 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. Ltd, WAM reported.

Keiji Takemori, Osaka Gas Executive Vice President, said: “ADNOC has been a reliable LNG supplier to Japan for nearly half a century. This new contract, with such a trusted LNG provider, will help ensure a stable energy supply for our customers.”