During an official visit to Japan on 6 July, UAE Minister of Industry and Advanced Technology and ADNOC CEO Sultan Ahmed Al Jaber announced a new liquefied natural gas (LNG) supply agreement with Japanese energy company Inpex, according to The National. Under the 15-year deal, ADNOC will supply one million tonnes of LNG per year from its Ruwais LNG project.
Japan, the world’s second-largest LNG importer, remains heavily dependent on Middle Eastern energy supplies. Around 90% of its crude oil imports come from the Middle East, with roughly 70% transiting through the Strait of Hormuz. ADNOC already supplies approximately one-third of Japan’s crude oil imports.
Located in Abu Dhabi’s Al Ruwais industrial zone, the Ruwais LNG project is scheduled to begin commercial operations in 2028. With an annual production capacity of 9.6 million tonnes, it is one of the flagship projects underpinning the UAE’s gas strategy. Nearly 90% of its future output has already been committed to international buyers across Asia and Europe, including Shell and Mitsui.
The facility is also expected to become the first LNG export terminal in the Middle East and Africa powered by clean electricity, reinforcing ADNOC’s ambition to market lower-carbon LNG.
ADNOC expands its global footprint
As part of the same visit, ADNOC and its international investment arm XRG also signed a strategic cooperation agreement with Japanese conglomerate Mitsui, according to Al Bayan. The partnership will explore collaboration across LNG, crude oil, sulphur, shipping, chemicals and lower-carbon fuels, while assessing new international energy investment opportunities.
The agreement reflects Abu Dhabi’s broader ambition to move beyond its traditional role as a hydrocarbon exporter and become a fully integrated global energy player, investing across infrastructure, trading and low-carbon technologies.
At the same time, ADNOC continues to expand its downstream business. On 7 July, ADNOC Distribution announced the acquisition of 100% of Shell Downstream South Africa (SDSA) in a deal valued at approximately $1 billion. The transaction includes 580 service stations, as well as Shell’s fuel wholesale, aviation fuel and lubricants businesses in South Africa.
The acquisition marks another milestone in ADNOC Distribution’s international expansion, following its entry into Egypt and Saudi Arabia. Once completed, the company will operate around 1,600 service stations and 900 convenience stores worldwide.
Taken together, these three initiatives, the development of Ruwais LNG, the deepening of energy ties with Japan, and the expansion of fuel retail operations in Africa, highlight a single strategic objective: securing long-term international markets, diversifying ADNOC’s business portfolio, and reinforcing the United Arab Emirates’ position as a leading global energy power.
Sources: Al Bayan / The National