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ADNOC and PETRONAS Partner for Landmark 15-Year LNG Agreement
Abu Dhabi, UAE – December 5, 2024: Abu Dhabi National Oil Company (ADNOC) announced the signing of a second Sales and Purchase Agreement (SPA) for the lower-carbon Ruwais liquefied natural gas (LNG) project with Malaysia’s PETRONAS. This 15-year SPA secures the supply of 1 million tonnes per annum (mtpa) of LNG, transitioning a previous Heads of Agreement into a binding deal.
Key Details of the Agreement
The LNG will primarily be sourced from the Ruwais LNG project, a state-of-the-art facility under development in Al Ruwais Industrial City, Abu Dhabi. Deliveries are scheduled to commence in 2028 upon the project’s commercial operations. Notably, over 8 mtpa of the project’s production capacity has already been committed to international customers through long-term agreements, underscoring its strategic importance.
Driving Energy Security and Sustainability
Fatema Al Nuaimi, Executive Vice President of Downstream Business Management at ADNOC, emphasized the significance 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.”
Expanding LNG Production Capacity
The Ruwais LNG project will be a game-changer for ADNOC Gas, doubling its existing LNG production capacity to around 15 mtpa. With an estimated cost of $5 billion, the facility includes two liquefaction trains, each with a capacity of 4.8 mtpa. ADNOC Gas announced in November 2024 that it plans to acquire ADNOC’s 60% stake in the project at cost by 2028, further solidifying its leadership in the LNG sector.
PETRONAS’ Strategic Collaboration
Shamsairi Ibrahim, Vice President of LNG Marketing & Trading at PETRONAS, highlighted the broader implications of the agreement:
“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 whilst enabling sustainable development and providing solutions for the energy transition that will enrich lives for a sustainable future.”
A Commitment to Innovation and Clean Energy
The Ruwais LNG plant is set to become a beacon of sustainability as the first LNG export facility in the Middle East and Africa to run entirely on clean power. Leveraging cutting-edge artificial intelligence and advanced technologies, the plant will achieve exceptional safety standards, minimize emissions, and maximize operational efficiency, making it one of the lowest-carbon intensity LNG plants globally.
Conclusion
ADNOC’s agreement with PETRONAS represents a pivotal step toward addressing the global demand for sustainable energy solutions. As the Ruwais LNG project advances, it will play a vital role in fostering international partnerships, supporting energy security, and accelerating the energy transition.
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