By: AGBI

Abu Dhabi state oil company Adnoc has signed a long-term agreement with a unit of the UK’s Shell to sell up to 1 million tonnes per annum of liquefied natural gas.

A 15-year sales pact has been struck with Shell International Trading Middle East, the eighth long-term offtake agreement secured for the Ruwais LNG project, the company said in a statement.

No financial details of the deal were given.

More than 8mtpa of the Ruwais LNG project’s planned 9.6mtpa capacity is now secured through long-term deals with customers across Asia and Europe. These have been done within 16 months after the project’s final investment decision in July 2024.

“Securing over 80 percent of Ruwais LNG’s capacity in just over a year from the final investment decision is a remarkable achievement that sets a new benchmark for large-scale LNG projects globally,” said Adnoc Gas CEO Fatema Al Nuaimi.

Construction, contractor mobilisation and site works are all on track for commissioning by the end of 2028, she said.

The LNG will be primarily sourced from the Ruwais LNG project, under development in Al Ruwais Industrial City, Abu Dhabi. 

Shell holds a 10 percent stake in the project through its subsidiary, Shell Overseas Holdings Limited.

The Ruwais LNG plant is described as being 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.  

The facility will more than double Adnoc Gas’s existing LNG production capacity to 15mtpa by adding two 4.8mtpa liquefaction trains.

Adnoc owns 86 percent of Adnoc Gas, which trades on the Abu Dhabi Securities Exchange. Its share price closed at AED3.31 on Tuesday, down nearly 4 percent year to date.