ADNOC signed a 15-year LNG supply agreement with INPEX, advancing Ruwais LNG commercialization and strengthening long-term UAE-Japan energy cooperation.
Abu Dhabi National Oil Company (ADNOC) has entered into a long-term Sales and Purchase Agreement (SPA) with INPEX CORPORATION, Japan’s leading exploration and production (E&P) company, for the supply of liquefied natural gas (LNG) from its upcoming Ruwais LNG project. Under the terms of the agreement, ADNOC will deliver 1 million tonnes per annum (mtpa) of LNG to INPEX over a period of 15 years, further strengthening the long-standing energy partnership between the United Arab Emirates and Japan.
The announcement was made during the official visit of His Excellency Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, and Executive Chairman of XRG, to Japan. Dr. Al Jaber is leading a high-level delegation engaged in discussions with senior Japanese government officials and business leaders to deepen bilateral energy cooperation. The visit reflects the commitment of both nations to expand their strategic relationship, which has been built over more than six decades of collaboration in the energy sector.
According to Nasser Al Muhairi, Acting CEO of ADNOC Downstream Industry, Marketing & Trading and Chairman of Ruwais LNG, the agreement represents the first major long-term LNG contract signed since the launch of ADNOC and XRG’s integrated global LNG marketing and trading platform. He emphasized that the new platform is designed to improve access to LNG markets worldwide while providing customers with greater commercial flexibility and a reliable supply of lower-carbon LNG. The agreement with INPEX also accelerates the commercialization of the Ruwais LNG project and reflects strong international confidence in the facility as it progresses toward completion.
Al Muhairi further highlighted that the Ruwais LNG project will play a significant role in ADNOC and XRG’s long-term strategy to achieve a combined marketable LNG capacity of 47 mtpa by 2035. The project is expected to become a dependable source of flexible LNG supplies for customers across Asia and other international markets, supporting growing global demand for cleaner energy solutions.
The agreement also reinforces the enduring partnership between ADNOC and INPEX. It aligns closely with INPEX Vision 2035, introduced in early 2025, which outlines the company's strategy to expand its LNG portfolio and enhance its ability to provide flexible LNG supplies beyond production from its own operated assets. In addition to being an LNG customer, INPEX has maintained a strong upstream presence in Abu Dhabi for many years through participating interests in several offshore and onshore oil and gas concessions operated in partnership with ADNOC.
The LNG supplied under the agreement will primarily originate from the Ruwais LNG project, currently under construction in Al Ruwais Industrial City, Abu Dhabi. Commercial production is scheduled to commence in 2028. The project is regarded as a cornerstone of ADNOC’s broader strategy to strengthen its position in the global LNG market while supplying lower-carbon energy to customers worldwide.
Significant progress has already been made in commercializing the project. ADNOC has confirmed that approximately 90% of the facility’s total production capacity of 9.6 mtpa has already been committed to international customers through long-term contracts spanning both Asian and European markets. This high level of contracted capacity demonstrates robust market demand and confidence in the project well ahead of its commissioning.
The Ruwais LNG plant is also expected to set new sustainability benchmarks for LNG production. It will become the first LNG export facility in the Middle East and Africa to operate using clean power, positioning it among the lowest-carbon-intensity LNG plants globally. The facility will integrate advanced digital technologies, including artificial intelligence, to optimize operational performance, improve safety standards, reduce emissions, and maximize efficiency throughout its operations.
In addition, ADNOC Gas announced in November 2024 its intention to acquire ADNOC’s 60% ownership stake in the Ruwais LNG project upon completion in 2028. The acquisition, valued at approximately $5 billion, is expected to significantly enhance ADNOC Gas’ LNG production capabilities. Once operational, the project’s two liquefaction trains, each with a capacity of 4.8 mtpa, will provide a combined output of 9.6 mtpa, increasing ADNOC Gas’ operated LNG production capacity to approximately 15 mtpa—more than double its current level. This expansion will strengthen the company’s ability to meet growing global LNG demand while supporting the transition toward lower-carbon energy sources.
Impact on Product and Chemical Commodity Prices
The 15-year LNG supply agreement between ADNOC and INPEX is expected to strengthen the long-term availability of liquefied natural gas, particularly across Asian markets, beginning with the Ruwais LNG project's commercial operations in 2028. While the agreement will not have an immediate impact on LNG supply, it enhances future supply security and reinforces confidence in global gas markets. Over the medium to long term, increased LNG availability could help stabilize natural gas prices, supporting competitive production costs for energy-intensive petrochemicals.
For chemical commodities tracked by ChemAnalyst, the immediate pricing impact is expected to be limited since the Ruwais LNG facility is still under development. However, once operational, improved LNG availability may reduce feedstock and energy cost volatility, benefiting products such as ammonia, methanol, hydrogen, urea, and other gas-based chemicals. Lower and more stable energy costs could also improve production economics for downstream petrochemicals, potentially exerting downward pressure on regional chemical prices while enhancing supply reliability across Asia and global markets.
