The SPA with Shell International Trading Middle East Limited FZE is for the delivery of up to 1 million tons per annum (mtpa) of LNG, according to a statement by state-owned Adnoc.
Adnoc said the deal marks its first long-term LNG sales agreement with Shell and the eighth long-term offtake agreement secured for the Ruwais LNG project.
The firm noted that this SPA converts a previous heads of agreement into a definitive agreement and marks a “significant step in Adnoc’s efforts to rapidly commercialize the Ruwais LNG project.”
Adnoc said the LNG supplies will be primarily sourced from the Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi.
Shell holds a 10 percent stake in the project through its subsidiary, Shell Overseas.
80 percent of Ruwais LNG capacity sold in just over a year
In June 2024, Adnoc made the final investment decision to build its LNG export terminal in UAE’s Al Ruwais.
The LNG project will more than double Adnoc’s existing UAE LNG production capacity to around 15 mtpa, as the company builds its international LNG portfolio.
Moreover, BP, Mitsui & Co., Shell, and TotalEnergies agreed to buy a 10 percent equity stake in Adnoc’s Al Ruwais LNG export terminal.
Adnoc Gas said in November 2024 that it expects to spend about $5 billion to buy a 60 percent operating interest from its parent company Adnoc in the Al Ruwais LNG plant.
“Securing over 80 percent 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,” Fatema Al Nuaimi, CEO of Adnoc Gas, said.
“While the industry can take up to four or five years to market such volumes, Ruwais is advancing at record pace. In parallel, construction, contractor mobilization, and site works are all on track for commissioning by the end of 2028,” she said.
