ADNOC, Shell sign 15-year LNG supply deal for Ruwais project

Abu Dhabi National Oil Company (ADNOC) has entered into a 15-year sales and purchase agreement (SPA) with a Shell subsidiary for the supply of liquefied natural gas (LNG) from the Ruwais LNG project in Abu Dhabi.

Under the SPA, Shell International Trading Middle East, a wholly owned subsidiary of Shell, will procure up to one million tonnes per annum (mtpa) of LNG from the project.

The SPA, signed at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), is ADNOC’s first long-term LNG supply contract with Shell. It is the eighth long-term offtake agreement for the Ruwais project.

It formalises a previous heads of agreement into a definitive contract.

With this deal, ADNOC now has long-term contracts signed for more than 8mtpa of the Ruwais LNG project’s planned 9.6mtpa total capacity.

The contracts were finalised within 16 months of the project’s final investment decision (FID) in July last year.

ADNOC Gas CEO Fatema Al Nuaimi said: “This agreement with Shell marks a significant milestone that reinforces ADNOC’s position as a reliable global supplier of lower-carbon LNG.

“Securing over 80% of Ruwais LNG’s capacity in just over a year from FID is a remarkable achievement that sets a new benchmark for large-scale LNG projects globally.

“While the industry can take up to four or five years to market such volumes, Ruwais is advancing at record pace. In parallel, construction, contractor mobilisation and site works are all on track for commissioning by the end of 2028.”

The Ruwais LNG project, located in Al Ruwais Industrial City, is currently under development. It is designed with two liquefaction trains, each with 4.8mtpa of capacity.

Shell, through its subsidiary Shell Overseas Holdings, holds a 10% interest in the project.

Once operational, the plant is expected to increase ADNOC Gas’ total LNG production capacity to around 15mtpa.

Commercial operations are scheduled to begin by the fourth quarter of 2028.

According to ADNOC, the Ruwais LNG plant will be the first LNG export facility in the Middle East and Africa to operate using clean power.

Shell LNG marketing and trading executive vice-president Tom Summers said: “Shell’s trusted partnership with ADNOC dates back more than 50 years and today we share a vision of strengthening global energy security through strategic collaboration.

“This agreement is a significant milestone in our partnership with ADNOC and supports Shell’s strategy of expanding our LNG portfolio.”

"ADNOC, Shell sign 15-year LNG supply deal for Ruwais project" was originally created and published by Offshore Technology, a GlobalData owned brand.

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