On Thursday, Adnoc declared that it and Malaysia’s PETRONAS had inked a second Sales and Purchase Agreement (SPA) for the lower-carbon Ruwais liquified natural gas (LNG) project.
An earlier Heads of Agreement between Adnoc and PETRONAS is transformed into a legally binding agreement by the 15-year SPA for the delivery of one million tonnes per annum (mtpa) of LNG. The Ruwais LNG plant, which is presently being developed in Abu Dhabi’s Al Ruwais Industrial City, will be the main source of the LNG. When its commercial operations begin in 2028, deliveries are anticipated to begin. Through long-term agreements, more than 8 mtpa of the project’s production capacity has been committed to foreign clients.
In November 2024, Adnoc Gas declared its intention to purchase Adnoc’s 60% interest in the Ruwais LNG project by the second half of 2028, at an approximate cost of $5 billion. The project will more than double Adnoc Gas’ currently operated LNG production capacity to almost 15 mtpa once completion. It consists of two 4.8 mtpa liquefaction trains with a combined capacity of 9.6 mtpa.
This partnership with Adnoc represents a significant milestone in strengthening PETRONAS’ business with the UAE, complementing our upstream activities and reinforcing the strategic economic relationship between the UAE and Malaysia,” stated Shamsairi Ibrahim, Vice President of LNG Marketing & Trading at PETRONAS.
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