Assalamu Alaikum - Adnoc signs 15-year LNG supply agreement with Shell for up to 1 million tonnes a year
Assalamu Alaikum - Abu Dhabi’s Adnoc has agreed a long-term sales and purchase deal with a unit of British energy company Shell for its Ruwais liquefied natural gas project.
The 15-year agreement, announced during the Abu Dhabi International Petroleum Exhibition and Conference, is Adnoc’s first long-term supply contract with Shell and covers up to one million tonnes per year of LNG. With this deal, Ruwais’ secured supply rises to more than 8 mtpa, roughly 80% of the project’s planned 9.6 mtpa capacity, through long-term arrangements with customers across Asia and Europe. This comes just 16 months after the project’s final investment decision in July 2024.
The LNG will mainly come from the Ruwais LNG project in Al Ruwais Industrial City - set to be the first export facility in the Middle East and Africa to run on clean power. Shell holds a 10% stake via Shell Overseas Holdings.
Fatema Al Nuaimi, CEO of Adnoc Gas, said the project sets a new benchmark for large LNG developments globally, noting that Ruwais is moving at record speed compared with typical industry timetables. She described the Shell agreement as an important milestone that strengthens Adnoc’s role as a dependable supplier of lower-carbon LNG.
This marks Adnoc’s eighth long-term offtake for Ruwais LNG; the latest SPA converts a prior heads of agreement into a definitive contract, a key step toward commercialising the project quickly. Construction, contractor mobilisation and site works remain on track for commissioning by the end of 2028, according to Ms Al Nuaimi.
The Ruwais plant aims to be among the world’s lowest-carbon intensity LNG projects, using AI and modern technologies to improve safety, efficiency and emissions performance. With two 4.8 mtpa liquefaction trains, the facility will more than double Adnoc Gas’s LNG output to about 15 mtpa and support its strategy to meet growing global demand.
Tom Summers, executive vice president of Shell LNG Marketing and Trading, noted Shell’s long partnership with Adnoc and said the agreement supports Shell’s LNG expansion plans and shared goals for energy security.
Adnoc Gas is central to Adnoc’s plan to raise natural gas production and expand LNG exports. It supplies about 60% of the UAE’s gas needs and serves customers in more than 20 countries, with access to around 95% of the UAE’s natural gas reserves and plans to grow exports of LNG, LPG and naphtha.
May Allah bless efforts that contribute to energy security and advancements that reduce environmental impact. Wa Salaam.
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