ADNOC has inked a 15-year liquefied natural gas supply agreement with Japan's INPEX, committing to deliver 1 million metric tons per annum (MMtpa) from its under-construction Ruwais LNG project. The deal marks another milestone for the emirate's push to lock in long-term buyers for its expanding export capacity.
With this contract, Japanese customers now account for nearly 23 percent of Ruwais LNG's total planned capacity of 9.6 MMtpa. The facility, located in Al Ruwais Industrial City, is expected to more than double the UAE's current LNG output, leveraging low-cost feedgas from Abu Dhabi's massive gas reserves.
Construction at Ruwais continues on schedule, with first LNG targeted for late 2027 or early 2028. The project represents one of the largest greenfield LNG developments globally this decade, with total investment exceeding $20 billion across upstream, liquefaction, and export infrastructure.
Japan, the world's second-largest LNG importer, is relying on long-term deals with Gulf producers to secure energy supplies as it reduces nuclear and coal dependence. The agreement underscores deepening ties between Abu Dhabi and Tokyo, with ADNOC already supplying crude and refined products to Japanese refiners.
Some analysts question whether such lengthy contracts lock buyers into potentially higher prices as global LNG markets become more liquid and renewables cheaper. Critics also note that new supply from Qatar and the US could pressure Ruwais volumes in a market projected to see surplus capacity by 2030.