Abu Dhabi’s state-owned energy giant Adnoc has entered into a long-term agreement with the UK’s Shell to supply up to 1 million tonnes per annum of liquefied natural gas (LNG).
The 15-year sales agreement, signed with Shell International Trading Middle East, marks the eighth long-term offtake deal secured for the Ruwais LNG project, Adnoc confirmed in a statement. No financial details of the arrangement were disclosed.
Adnoc has now secured over 8 million tonnes per annum (mtpa) of Ruwais LNG’s planned 9.6mtpa capacity through long-term contracts with buyers across Asia and Europe. These deals were finalised within just 16 months of the project’s final investment decision (FID) in July 2024.
“Securing over 80 percent of Ruwais LNG’s capacity in just over a year from the final investment decision is a remarkable achievement that sets a new benchmark for large-scale LNG projects globally,” said Fatema Al Nuaimi, CEO of Adnoc Gas. She added that construction, contractor mobilisation, and site works remain on schedule, with commissioning expected by the end of 2028.
The LNG will primarily be sourced from the Ruwais LNG project, located in Al Ruwais Industrial City, Abu Dhabi. Shell holds a 10 percent stake in the project through its subsidiary, Shell Overseas Holdings Limited.
The Ruwais LNG facility is set to become the first LNG export terminal in the Middle East and Africa to operate entirely on clean power, positioning it among the world’s lowest-carbon-intensity LNG projects. Once operational, the plant will more than double Adnoc Gas’s current LNG production capacity to 15mtpa by adding two new liquefaction trains, each with a capacity of 4.8mtpa.
Adnoc owns an 86 percent stake in Adnoc Gas, which is listed on the Abu Dhabi Securities Exchange. The company’s shares closed at AED3.31 on Tuesday, reflecting a decline of nearly 4 percent since the beginning of the year.
