ADNOC Secures 15-Year LNG Supply Deal with Shell for Ruwais Project

Core Insights - ADNOC has signed a 15-year sales and purchase agreement with Shell for up to 1 million tons per annum of LNG from the Ruwais LNG project, marking ADNOC's first long-term LNG deal with Shell [1] - The agreement converts a prior Heads of Agreement into a definitive deal, bringing ADNOC's total contracted LNG volumes from Ruwais to over 8 million tons per annum, which is over 80% of the project's 9.6 million tons per annum capacity [2] - The Ruwais LNG project will be the first LNG export terminal in the Middle East and Africa powered entirely by clean energy, set to operational in Q4 2028, doubling ADNOC Gas's existing LNG capacity to roughly 15 million tons per annum [3] ADNOC's Strategic Moves - The deal with Shell underscores ADNOC's rapid progress in commercializing the Ruwais project and its commitment to expanding its lower-carbon LNG portfolio, achieving long-term offtake commitments in just over a year [4] - The agreement strengthens Shell's strategic partnership with ADNOC, supporting its efforts to grow its LNG trading and marketing business amid tightening global gas supplies and rising demand for lower-carbon energy sources [5] Industry Context - The Ruwais facility's low-carbon profile aligns with ADNOC's broader decarbonization strategy and the UAE's national push to become a leading global supplier of cleaner energy [6] - The deal highlights the growing importance of long-term LNG contracts as buyers seek supply security in an increasingly volatile global energy market [6]