UAE’s Adnoc has signed a heads of agreement with a unit of Chinese independent gas distributor ENN to supply the latter with liquefied natural gas from its planned LNG terminal in Al Ruwais.
Under the deal, ENN LNG (Singapore), a unit of ENN Natural Gas, will buy 1 million metric tons per annum of LNG for a period of 15 years.
Adnoc said in a statement that the LNG supplies would primarily be sourced from its planned LNG terminal in Al Ruwais Industrial City, Abu Dhabi.
The deliveries are expected to start in 2028, upon commencement of the facility’s commercial operations.
This is the first Ruwais LNG supply agreement.
Adnoc said the deal is contingent upon a final investment decision (FID) on the project, including regulatory approvals, and the negotiation of a definitive sale and purchase agreement between the two companies.
Rashid Khalfan Al Mazrouei, Adnoc’s senior VP, marketing, said this this is a “landmark” LNG agreement from the company’s ongoing Ruwais LNG project.
“We are making excellent progress in delivering this strategic project as we grow our portfolio of lower-carbon energy solutions,” he said.
Earlier this year, Adnoc announced it will build its second LNG terminal in Al Ruwais.
The firm previously planned to construct the facility in Fujairah.
Adnoc Gas, the gas and LNG unit of Adnoc, also awarded US energy services firm Baker Hughes a contract for the planned LNG export terminal.
Adnoc recently also said it is “advancing towards” a final investment decision to build the LNG terminal.
When completed, the project, which consists of two 4.8 mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa, will more than double Adnoc’s LNG production capacity.
Adnoc owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.
