Abu Dhabi National Oil Company (ADNOC) has signed a sales and purchase agreement (SPA) with Malaysia’s state-owned energy player Petronas for the supply of liquefied natural gas (LNG) from the Ruwais LNG plant.
The 15-year deal for supplying 1 million tonnes per annum (mtpa) of LNG formalizes a previous heads of agreement (HoA) between the two players. Natural gas will primarily be sourced from Ruwais LNG, a lower-carbon project currently under development in Al Ruwais Industrial City, Abu Dhabi. This is the second definitive SPA for the project, following the one with Germany’s Securing Energy for Europe (SEFE) last month.
“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,” said Fatema Al Nuaimi , Executive Vice President of Downstream Business Management at ADNOC.
Once completed, the plant will have a combined capacity of 9.6 mtpa, comprising two 4.8-mtpa trains, with deliveries scheduled to start in 2028. Over 8 mtpa of the project’s production capacity has been committed to international customers through long-term agreements, including most recently Japan’s Osaka Gas .
Shamsairi Ibrahim , Vice President of LNG Marketing & Trading at PETRONAS, noted: “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.”
According to the UAE player, Ruwais LNG will be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, making it one of the lowest-carbon-intensity LNG plants in the world. Artificial intelligence and new technologies will be used to enhance safety, minimize emissions, and drive efficiency.
A final investment decision (FID) for the project was taken in July , which is also when energy majors Mitsui & Co, Shell, BP, and TotalEnergies came on board as partners, each taking a 10%-interest in the project.
Last month, ADNOC Gas disclosed that it expects to acquire its parent company’s 60% stake in Ruwais LNG in the second half of 2028. This is set to push its existing operated LNG production capacity to around 15 mtpa, more than double what it currently processes.