Abu Dhabi National Oil Company (ADNOC) said Tuesday it has signed a 15-year sales and purchase agreement with Shell International Trading Middle East Limited FZE, a wholly-owned subsidiary of Shell, for up to 1 million tons per year of liquefied natural gas (LNG) from the Ruwais project.
The agreement brings total long-term commitments for Ruwais LNG, currently under development in Al Ruwais Industrial City, to more than 8 million tons per year of its planned 9.6 million-ton capacity, ADNOC said in a statement.
Shell holds a 10% stake in the project through its subsidiary, Shell Overseas Holdings Limited, the statement added.
The Ruwais LNG plant will be the first LNG export facility in the Middle East and Africa region to operate on clean power, making it one of the lowest-carbon intensity LNG projects in the world.
Signed during Abu Dhabi International Petroleum Exhibition and Conference, the deal marks ADNOC's first long-term LNG sales agreement with Shell and the eighth long-term offtake agreement secured for the Ruwais LNG project.
Commenting on the deal, ADNOC CEO Fatema Al Nuaimi said: "This agreement with Shell marks a significant milestone that reinforces ADNOC's position as a reliable global supplier of lower-carbon LNG."
"Securing over 80% of Ruwais LNG's capacity in just over a year from FID is a remarkable achievement that sets a new benchmark for large-scale LNG projects globally," Al Nuaimi added.
"While the industry can take up to four or five years to market such volumes, Ruwais is advancing at record pace," Al Nuaimi added. "In parallel, construction, contractor mobilization, and site works are all on track for commissioning by the end of 2028."
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr