Shell Signs 15-Year LNG Offtake Agreement with ADNOC
Abu Dhabi National Oil Company (ADNOC) has finalized a long-term liquefied natural gas (LNG) offtake deal with Shell International Trading Middle East Limited FZE, a fully owned subsidiary of UK-based Shell. This agreement supports ADNOC's low-carbon LNG project under development in the United Arab Emirates (UAE).
Under the 15-year sales and purchase agreement (SPA), Shell will purchase up to 1 million tons per annum (mtpa) of LNG. This deal marks ADNOC's first long-term LNG sales contract with Shell and represents the eighth long-term offtake agreement for the Ruwais LNG project, following the initial SPA announced in 2024.
Shell owns a 10% stake in the Ruwais LNG project through its subsidiary Shell Overseas Holdings. The new SPA formalizes a previous heads of agreement and is a key step in ADNOC’s strategy to quickly bring the Ruwais LNG project to market. The LNG under this contract will mainly come from the Ruwais LNG facility currently being developed in Al Ruwais Industrial City, Abu Dhabi.
"Thanks to a 15-year sales and purchase agreement (SPA) for the delivery of up to 1 million tons per annum (mtpa) of LNG, ADNOC has signed its first long-term LNG sales agreement with Shell."
"The latest SPA, which converts a previous heads of agreement into a definitive agreement, is said to represent a significant step in ADNOC’s efforts to rapidly commercialize the project."
Project Highlights
- ADNOC's low-carbon LNG project is located in the UAE.
- Shell holds a 10% equity stake via Shell Overseas Holdings.
- The SPA duration is 15 years with up to 1 million mtpa of LNG offtake.
- This is the eighth long-term offtake agreement for the Ruwais LNG project.
- The LNG will be primarily sourced from the Ruwais facility in Al Ruwais Industrial City, Abu Dhabi.
Author's summary: Shell's 15-year LNG supply deal with ADNOC advances the UAE's Ruwais LNG project, signaling strong momentum in commercializing low-carbon LNG capacity.