Abu Dhabi's state oil company, ADNOC, announced on Wednesday the signing of a 15-year contract to supply a minimum of 1 million metric tons per year of liquefied natural gas (LNG) to a branch of China's ENN Natural Gas. ADNOC stated that the LNG will mainly originate from its eco-friendly Ruwais LNG project, presently in progress in Al Ruwais Industrial City, Abu Dhabi. The company added that shipments are anticipated to commence in 2028 coinciding with the commencement of commercial activities at Ruwais.
The contract with ENN LNG, a Singapore-based arm of China's ENN Natural Gas, is contingent upon final investment approval, regulatory clearances, and the completion of a definitive sale and purchase agreement. ADNOC intends to expand its LNG production capacity significantly to address the growing global demand through its upcoming project.
Amid Europe's rush to secure alternative gas supplies after Russia's invasion of Ukraine last year, there has been a surge in natural gas demand. ADNOC stated that the Ruwais facility will utilize electric-powered processing units and operate on renewable and nuclear grid energy, positioning it as one of the world's least carbon-intensive LNG facilities. Once completed, it will consist of two 4.8 million metric tons per annum (mtpa) LNG liquefaction units.