ADNOC signs 15-year, 1 million tpy supply deal with Shell
Published by Abby Butler,
Editorial Assistant
LNG Industry,
ADNOC has signed a 15-year sales and purchase agreement (SPA) with Shell International Trading Middle East Ltd FZE, a wholly-owned subsidiary of Shell plc, for the delivery of up to 1 million tpy of LNG.
Signed during ADIPEC, the deal marks ADNOC’s first long-term LNG sales agreement with Shell and the eighth long-term offtake agreement secured for the Ruwais LNG project. The first SPA was announced at ADIPEC in 2024.
This SPA converts a previous heads of agreement (HoA) into a definitive agreement and marks a significant step in ADNOC’s efforts to rapidly commercialise the Ruwais LNG project. With this latest agreement, more than 8 million tpy of the project’s planned 9.6 million tpy capacity is now secured through long-term deals with customers across Asia and Europe, just 16 months after the project’s final investment decision (FID) in July 2024.
Fatema Al Nuaimi, CEO, ADNOC Gas, commented: “This agreement with Shell marks a significant milestone that reinforces ADNOC’s position as a reliable global supplier of lower-carbon LNG. Securing over 80% 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. 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 mobilisation, and site works are all on track for commissioning by the end of 2028.”
The LNG will be primarily sourced from the Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi. Shell holds a 10% stake in the project through its subsidiary, Shell Overseas Holdings Ltd.
Tom Summers, Executive Vice President of Shell LNG Marketing and Trading, responded: “Shell’s trusted partnership with ADNOC dates back more than 50 years and today we share a vision of strengthening global energy security through strategic collaboration. This agreement is a significant milestone in our partnership with ADNOC and supports Shell’s strategy of expanding our LNG portfolio.’’
The Ruwais LNG plant will be 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 plant will leverage artificial intelligence (AI) and the latest technologies to enhance safety, operational efficiency, and emissions performance.
With two 4.8 million tpy liquefaction trains, the facility will more than double ADNOC Gas’ existing LNG production capacity to approximately 15 million tpy, supporting ADNOC’s strategy to expand its LNG portfolio to meet rising global demand.
Read the article online at: https://www.lngindustry.com/small-scale-lng/04112025/adnoc-signs-15-year-1-million-tpy-supply-deal-with-shell/