ADNOC, PETRONAS finalise 15-Year LNG sales deal for Ruwais Project

ADNOC has cemented its partnership with Malaysia’s PETRONAS with the signing of a second 15-year sales and purchase agreement (SPA) for liquefied natural gas (LNG) from the Ruwais LNG project.

The agreement, which converts prior heads of agreement (HoA) into a binding deal, will see PETRONAS purchase one million tonnes per annum (mtpa) of LNG, with deliveries set to commence in 2028 upon the project’s commercial launch.

The deal marks a significant milestone for ADNOC’s Ruwais LNG initiative, underscoring its strategic role in the global energy market.

This agreement also highlights ADNOC’s growing influence in the cleaner, lower-carbon LNG sector as the world accelerates its energy transition.

To date, over 8 mtpa of the project’s planned production capacity has already been secured through long-term sales agreements with international customers.

Ruwais LNG plant to use advanced tech

The Ruwais LNG plant, located in Al Ruwais Industrial City in Abu Dhabi, is poised to become a cornerstone in the Middle East and Africa’s LNG landscape.

Expected to be one of the lowest-carbon intensity LNG facilities globally, it will leverage clean power to run its operations. The project will also utilise advanced technologies, including artificial intelligence, to enhance safety, minimise emissions, and drive operational efficiency.

Fatema Al Nuaimi, ADNOC’s EVP for Downstream Business Management, commented on the strategic importance of the partnership: “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.”

Strengthening ties Between the UAE and Malaysia

PETRONAS, already an established partner in the UAE’s energy sector, will enhance its LNG portfolio with a reliable supply of lower-carbon energy sourced from Ruwais. This agreement aligns with PETRONAS’ broader goals of supporting sustainable energy development in Southeast Asia and beyond.

Shamsairi Ibrahim, VP of LNG Marketing & Trading at PETRONAS, emphasised the broader economic and geopolitical significance of the deal: “This partnership with ADNOC marks a significant milestone in strengthening PETRONAS’ business with the UAE, complementing our upstream activities while reinforcing the strategic economic relationship between the UAE and Malaysia.

“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.”

Read: Malaysia’s PETRONAS lands oil and gas exploration deal in Abu Dhabi

Doubling ADNOC Gas’ LNG production capacity

In another key development, ADNOC Gas announced plans in November to acquire ADNOC’s 60 per cent stake in the Ruwais LNG project for approximately $5bn.

This acquisition is expected to close in the second half of 2028, a move that will significantly expand ADNOC Gas’ LNG production capacity.

Once operational, the Ruwais LNG project will feature two liquefaction trains with a combined capacity of 9.6 mtpa, more than doubling ADNOC Gas’ current operated LNG production capacity to around 15 mtpa.

The Ruwais LNG project is expected to be a game-changer not only for ADNOC but also for the broader LNG industry, as it meets increasing global demand for cleaner energy while supporting the energy transition.

The Ruwais LNG facility is poised to make history as the first LNG export terminal in the region to be powered by clean energy.

As the world moves towards more sustainable energy solutions, ADNOC’s commitment to reducing the carbon footprint of its LNG production marks an important step in the region’s energy future.

Read: ADNOC launches $80bn lower-carbon energy, chemicals investment entity