Osaka Gas, ADNOC sign initial agreement for LNG delivery
TOKYO, Aug 6 (Reuters) -Japanese city gas provider Osaka Gas 9532.T said on Tuesday it has signed a long-term Heads of Agreement (HOA) with UAE's ADNOC ADNOC.UL for the delivery of up to 0.8 million metric tons per annum of liquefied natural gas (LNG).
This marks the first long-term LNG deal between Osaka Gas and ADNOC, the Japanese company said in a statement, adding that the contract is expected to start in the late 2020s.
The LNG will be primarily sourced from the Ruwais LNG project, which is under development in Al Ruwais Industrial City, Al Dhafra in Abu Dhabi. The project isexpected to start commercial operations in 2028 as the first LNG export facility in the Middle East and North Africa region to run on clean power, the statement said.
Under the agreement, LNG cargoes will be shipped to the destination ports of Osaka Gas and its Singapore-based subsidiary, Osaka Gas Energy Supply and Trading (OGEST).
Osaka Gas and ADNOC will work together to conclude a detailed sale and purchase agreement in the coming months based on the terms of the HOA, it added.
Reporting by Yuka Obayashi; Editing by Eileen Soreng
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