The Abu Dhabi National Oil Company (ADNOC) has entered into a substantial 15-year sales and purchase agreement (SPA) with Inpex, a major Japanese energy firm. This agreement outlines the supply of one million tonnes per annum (mtpa) of liquefied natural gas (LNG) from ADNOC's upcoming Ruwais LNG initiative. This strategic move was unveiled during a recent diplomatic and business visit to Japan by high-ranking officials from the United Arab Emirates, underscoring the deepening energy partnership between the two nations.
The Ruwais LNG endeavor, situated in Al Ruwais Industrial City, Abu Dhabi, is slated to commence its commercial operations in 2028. This long-term contract with Inpex means that more than 90% of the project's projected 9.6 mtpa production capacity is now secured under various commitments, reflecting strong market confidence in the venture. Notably, Japanese clients collectively represent nearly 23% of this contracted volume, highlighting Japan's crucial role in the future of the Ruwais project.
A distinguishing feature of the Ruwais LNG facility is its aspiration to be the first LNG export plant in the Middle East and Africa region to operate exclusively on clean power. This commitment to sustainable energy practices aligns with global efforts to reduce carbon emissions and transition towards cleaner energy sources. Furthermore, ADNOC has indicated that the project will leverage advanced artificial intelligence (AI) and other cutting-edge technologies to enhance safety protocols and meticulously manage emissions, setting a new benchmark for environmental responsibility within the industry.
Nasser Al Muhairi, who is the acting CEO for ADNOC's downstream industry, marketing, and trading, and also the chairman of Ruwais LNG, emphasized the significance of this SPA. He stated that this agreement with Inpex represents the inaugural long-term LNG deal announced since the establishment of ADNOC and XRG's integrated global LNG marketing and trading platform. This platform aims to provide customers with a broader range of LNG molecules, improved market access, and greater commercial flexibility. He further noted that this builds upon ADNOC's extensive and enduring energy partnership with Japan, facilitating the commercialization of Ruwais LNG and reinforcing the robust market trust in the project's viability and success.
Inpex has described this agreement as being in perfect harmony with its 'Vision 2035' strategy, which was unveiled in February 2025. This strategy is centered on expanding the company's LNG portfolio and enhancing the flexibility of its supply chains to meet evolving global energy demands. Beyond this new LNG agreement, Inpex is also an active participant in several of ADNOC's upstream projects, spanning both offshore and onshore concessions in Abu Dhabi, showcasing a comprehensive and multifaceted collaboration.
Looking ahead, ADNOC Gas previously indicated in November 2024 its intention to acquire ADNOC's 60% share in the Ruwais LNG project at cost, a transaction valued at an estimated $5 billion (Dh18.36 billion). Once fully operational, the project's two liquefaction trains, each capable of producing 4.8 mtpa, will significantly boost ADNOC Gas' total operated LNG production to approximately 15 mtpa. This expansion is critical for meeting the growing global demand for natural gas and solidifying the UAE's position as a key energy provider.
Recently, ADNOC launched a consolidated global LNG marketing and trading platform, headquartered in Abu Dhabi Global Market. This platform integrates the trading operations of ADNOC Gas, XRG, and ADNOC Trading. Its primary objective is to facilitate wider customer access and offer enhanced shipping flexibility for ADNOC Gas' expanding LNG portfolio, which includes volumes from the Ruwais project and XRG's international business. ADNOC and XRG have jointly set an ambitious target of achieving a combined marketable LNG capacity of 47 mtpa by 2035, underscoring their commitment to becoming a leading global player in the LNG market.
This landmark agreement between ADNOC and Inpex for the Ruwais LNG project signifies a pivotal moment in the global energy landscape. It not only secures long-term energy supply for Japan but also cements the UAE's role as an innovator in clean energy production, leveraging advanced technology and strategic partnerships to meet future energy demands responsibly. The project's emphasis on clean power and AI-driven management reflects a forward-thinking approach to energy production, promising substantial contributions to both economic growth and environmental stewardship.
