United Arab Emirates: LNG Export Agreement Signed with Malaysia

ADNOC, the energy giant of the United Arab Emirates, announced that it has “signed a long-term agreement to export liquefied natural gas (LNG) to Malaysia’s Petronas over the next 15 years.”

The ADNOC press release emphasized that this is one of the “most important international agreements in the context of the Ruwais Industrial Center low-carbon LNG project.”

According to ADNOC, the 15-year agreement to supply one million tons of LNG per year to Malaysia “turns the previous tentative agreement with Petronas into a definitive agreement.” The LNG to be exported to Malaysia will be mainly produced by the Ruwais LNG project, which is currently being developed in the industrial city of Ruwais in the Abu Dhabi Emirate of the United Arab Emirates. Deliveries are expected to begin in 2028, after Ruwais LNG begins commercial operations.

According to ADNOC, all 8+ million tons of the Ruwais project’s annual LNG production capacity “has already been transferred to major international customers under long-term commercial agreements.”

For Petronas, the agreement with ADNOC “strengthens the LNG portion of the Malaysian company’s portfolio by reliably supplying low-carbon energy to meet Malaysia’s domestic demand,” said Petronas LNG marketing and trading vice president Shamsairi Ibrahim, according to whom “the cooperation with ADNOC will enhance security of supply for our customers and foster deeper cooperation between the governments of the United Arab Emirates and Malaysia.” In addition, Ibrahim said the agreement will provide “reliable solutions for the energy transition and a sustainable future.”