Abu Dhabi National Oil Company (ADNOC) signed on Wednesday, December 20, 2023, an agreement to export one million tons of liquefied natural gas per year to one of the Chinese companies. The contract period is 15 years, beginning in 2028.

ADNOC announced in a statement that it will supply such a quantity per year to Singapore-based PTI, wholly owned by the Chinese company “INN.” The shipments will be sent primarily from the ADNOC Ruwais Low Carbon LNG Project, which is currently being developed in Ruwais Industrial City in Abu Dhabi.

The statement added that ADNOC seeks, through this project, to more than double the targeted production capacity of liquefied natural gas to fulfill the increasing global demand for such a vital resource. The project will be the first in the Middle East and North Africa to produce electricity from clean power. It will reduce carbon emissions and ultimately achieve the ADNOC target of achieving carbon neutrality by 2045.

The Ruwais project consists of two liquefaction trains, each with a production capacity of 4.8 million tons per year, for a total production capacity of approximately 9.6 million tons per year. This project will increase ADNOC’s LNG production capacity by more than half, allowing it to meet the needs of the global market, especially after the increasing demand for gas in Europe as a result of the Russian-Ukrainian war and the European countries’ efforts to secure their gas supplies to replace Russian gas.

Rashid Al Mazrouei, ADNOC Senior Vice President of Marketing, added that “this agreement enhances the position of “ADNOC” as an authentic global provider responsible for supplying energy and provides new opportunities to create value through our gas value chain in the context of continued increasing demand for this vital resource. We are making progress in completing this strategic project while we expand our investments in low-carbon energy solutions to support the transition efforts in the energy sector and keep supporting our clients and partners.