Adnoc has signed its first long-term heads of agreement (HoA) for supplies from its Ruwais LNG project, with China’s ENN Natural Gas.
The ENN unit has signed up to take 1 million tonnes per year of LNG from the low-carbon facility for 15 years, under the HoA.
Adnoc said Ruwais LNG would be the primary source of supply for the contract. The project is due to start deliveries in 2028.
The HoA is contingent on reaching a final investment decision (FID) on Ruwais LNG. Then, the two companies will need to negotiate a definitive sale and purchase agreement (SPA).
“This landmark LNG agreement from our ongoing Ruwais LNG project enhances Adnoc’s position as a reliable and responsible global energy provider and creates new opportunities for value-creation across our gas value chain as natural gas demand continues to increase,” said Rashid Khalfan Al Mazrouei, Adnoc senior vice president of marketing.
He went on to say the company was making “excellent progress in delivering this strategic project”. Adnoc is growing its “portfolio of lower-carbon energy solutions to enable the energy transition and we will continue to support our customers and partners on this journey”.
Adnoc has said Ruwais LNG will be the first LNG facility in the Middle East and North Africa to run on clean power. As such, it will be one of the lowest-carbon intensity LNG plants in the world.
Ruwais LNG will have two electric drive trains, each with 4.8mn tpy of capacity. This is more than double Adnoc LNG’s production.
Adnoc said it would build the new LNG plant at Ruwais in May this year. Previously, it had planned to build the project at Fujairah.
ENN has signed a number of LNG contracts in recent years. Perhaps most notably it has been keen to sign up with US suppliers such as Cheniere Energy and Next Decade.