Abu Dhabi National Oil Company (ADNOC) has finalised a 15-year sales and purchase agreement (SPA) with Malaysia’s state-owned Petronas for the supply of 1 mill tonnes per annum of LNG.
This agreement builds on a previous heads of agreement (HoA), which has now been converted into a firm contract.
The LNG will be sourced from the Ruwais LNG project, located in Al Ruwais Industrial City, Abu Dhabi, which is set to begin commercial operations in 2028.
With this latest deal, over 8 mill tonnes per annum of the project’s production capacity is now committed to international customers through long-term agreements, ADNOC said.
Fatema Al Nuaimi, ADNOC’s Executive Vice President for Downstream Business Management, said: “Natural gas plays a critical role in meeting the world’s energy needs, and we are proud to partner with Petronas to deliver lower-carbon LNG through this landmark agreement.
“This milestone further underscores ADNOC’s role as a reliable global energy supplier and supports growing demand in Asia for cleaner, more sustainable energy solutions,” she said.
Ruwais LNG is set to become the first LNG export plant in the Middle East and Africa region powered entirely by clean energy, which will make it one of the lowest carbon intensity LNG plants globally.
The project will also leverage artificial intelligence (AI) and advanced technologies to enhance operational safety, minimise emissions, and boost efficiency, the energy company claimed.
ADNOC Gas recently announced plans to acquire ADNOC’s 60% stake in the project, at an estimated cost of $5 bill.
Upon its completion in 2028, the facility, featuring two liquefaction trains with a combined capacity of 9.6 mill tonnes per year, will increase ADNOC Gas’ overall LNG production capacity to around 15 mill tonnes per year.
Shamsairi Ibrahim, Petronas Vice President of LNG Marketing & Trading, added: “This collaboration bolsters our LNG portfolio with a reliable supply of lower-carbon energy to meet Malaysia’s domestic demand, enhances security of supply for our customers, and fosters deeper government-to-government collaboration.”
Ibrahim also emphasised that the agreement would boost Malaysia’s LNG portfolio, enhance domestic energy security, and strengthen government-to-government relations.
