SEATTLE (Oil Monster): Osaka, Japan-based Osaka Gas Co. Ltd. and the state-owned Abu Dhabi National Oil Company (ADNOC) have signed a long-term Heads of Agreement (HOA), aimed at delivery of up to 0.8 million metric tonnes per annum (Mtpa) of liquefied natural gas (LNG). This is the fist-of-its-kind agreement between the two companies.
As per the agreement, the LNG will be mainly sourced from the Ruwais LNG project, which is currently under development and is projected to commence commercial operations by 2028. Also, the LNG cargoes will be shipped to ports of Osaka Gas and its subsidiary, Osaka Gas Energy Supply and Trading Pte (OGEST).
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Based on the HOA, the two companies will collaborate to arrive at a detailed sale and purchase agreement in the forthcoming months. The proposed duration of the contract was not disclosed.
The agreement will further strengthen ADNOC’s position as a reliable and responsible global energy provider. Also, it reflects the company’s commitment in helping Japan meet its growing energy requirements. Rashid Khalfan Al Mazrouei, ADNOC Senior Vice President, Marketing termed the deal as a ‘landmark’.
The Ruwais LNG project, the first LNG export facility in the Middle East and Africa region to operate on clean energy, is located in in Al Ruwais Industrial City, Al Dhafra, Abu Dhabi, will have a total capacity of 9.6 Mtpa.
