ADNOC and INPEX Forge 15-Year LNG Supply Agreement
In a significant move to bolster its global energy footprint, Abu Dhabi National Oil Company (ADNOC) has entered a 15-year Sales and Purchase Agreement (SPA) with Japan’s largest exploration and production firm, INPEX CORPORATION. The agreement, announced in Tokyo, ensures the supply of one million tonnes per annum of liquefied natural gas (LNG) from the Ruwais LNG project.
Strategic Collaboration with Japan
This agreement was unveiled during a visit by Dr. Sultan Al Jaber, UAE’s Minister of Industry and Advanced Technology and ADNOC’s Managing Director and Group CEO. Dr. Al Jaber, who is also the Executive Chairman of XRG, led a delegation to Japan to engage with senior government and business leaders. This visit aimed to cement the UAE’s enduring energy partnership with Japan, a relationship that spans over six decades.
Nasser Al Muhairi, Acting CEO of ADNOC Downstream Industry, Marketing & Trading, and Chairman of Ruwais LNG, emphasized the significance of this deal. “This SPA with INPEX is the first long-term LNG agreement following the launch of ADNOC and XRG’s integrated global LNG marketing and trading platform. It demonstrates our commitment to delivering more LNG molecules, greater market access, and enhanced commercial flexibility to our customers,” Al Muhairi stated.
Ruwais LNG: A Pivotal Project
The Ruwais LNG project, located in Abu Dhabi’s Al Ruwais Industrial City, is expected to commence operations in 2028. Once operational, the project will be the first LNG export facility in the Middle East and Africa to utilize clean power, making it one of the lowest-carbon intensity LNG plants globally. The facility plans to incorporate cutting-edge technologies and artificial intelligence to boost safety, efficiency, and operational excellence while minimizing emissions.
The agreement with INPEX marks a crucial step in ADNOC’s global LNG expansion strategy, reinforcing the company’s status as a leading supplier of lower-carbon LNG. Currently, 90% of the Ruwais LNG project’s 9.6 mtpa production capacity is already committed to international buyers in Asia and Europe through long-term contracts.
Strengthening Ties with INPEX
The partnership between ADNOC and INPEX is not new. INPEX holds stakes in several of Abu Dhabi’s offshore and onshore concessions, making it a long-standing upstream partner of ADNOC. This SPA aligns with INPEX Vision 2035, an initiative launched in February 2025, aimed at strengthening its LNG portfolio and offering flexible LNG supply solutions.
As ADNOC and XRG target a combined marketable LNG capacity of 47 mtpa by 2035, Ruwais LNG is poised to become a vital source of reliable and flexible energy for customers worldwide.
Future Expansion Plans
In a related development, ADNOC Gas announced plans to acquire ADNOC’s 60% stake in the Ruwais LNG project by 2028, a move estimated at $5 billion. This acquisition will include two liquefaction trains with a combined capacity of 9.6 mtpa, effectively doubling ADNOC Gas’s existing LNG production capability to approximately 15 mtpa.
This strategic expansion not only highlights ADNOC’s commitment to sustainable energy solutions but also signifies a robust future for the company’s LNG ventures on the global stage.
