INPEX, two other Japanese companies transport clean ammonia from UAE's ADNOC

INPEX, IHI Corp and Mitsui O.S.K lines have completed the transport of a clean ammonia cargo to Japan from the UAE, where the commodity was produced by Abu Dhabi National Oil Co. joint venture as the two countries beef up cooperation in low-carbon product supply.

The clean ammonia was produced in Fertigloble, ADNOC's joint venture with OCI, using natural gas from Abu Dhabi, INPEX said in a statement June 30.

"Most of the CO2 emitted from the production of the ammonia was sequestered and injected into Abu Dhabi onshore oil fields in which INPEX has a participating interest, making it clean ammonia," the statement said. "INPEX oversaw the entire process of the demonstration in close partnership with ADNOC."

Mitsui transported the clean ammonia to Japan in a tank container and IHI used the product to conduct a combustion experiment using an ammonia combustion turbine which is under development, the statement added. The shipment took place May 18, while IHI received the cargo June 22 and completed its co-burning test with gas June 27, an INPEX spokesperson told S&P Global Commodity Insights.

The supply of the clean ammonia is part of a sales and purchase agreement with ADNOC signed last year.

"The company will continue to work towards building a hydrogen and ammonia supply chain linking Japan and Abu Dhabi, one of INPEX's core business areas, in cooperation with the Japanese government and customers as well as ADNOC," the statement added.

Last year, INPEX said it wanted to explore the commercial potential of a clean ammonia production business in Abu Dhabi in cooperation with ADNOC, JERA Co., Inc. (JERA) and the Japan Oil, Gas and Metals National Corporation (JOGMEC).

Hydrogen UAE PEM Electrolysis was assessed at $6.4542/kg June 29, unchanged on the day, according to assessments by Platts, part of S&P Global Commodity Insights.

Long-time partner

INPEX has identified the development of hydrogen and ammonia as one of its five net zero businesses and wants to commercialize three or more projects by around 2030 while producing and supplying 100,000 mt or more of hydrogen/ammonia per year.

ADNOC has been stepping up ties with Japan and working on ammonia and hydrogen deals with the Asian country as part of the UAE's plans to supply 25% of the world's low-carbon hydrogen by 2030.

Last year, ADNOC sold blue ammonia cargoes to Japan's INPEX, Idemitsu and Itochu, without disclosing the size or value of the deals.

INPEX is a long-time partner of ADNOC's in the upstream business.

INPEX is one of nine companies that are partners with ADNOC and the Intercontinental Exchange in ICE Futures Abu Dhabi, the exchange hosting the Murban crude futures contracts that were launched on March 29, 2021.

In 2019, INPEX won exploration rights for ADNOC's Abu Dhabi Onshore Block 4. In 2018, INPEX won a 10% stake in ADNOC's new Lower Zakum offshore concession and was also awarded an extension to its 40% stake in Satah field, and an increase in its shareholding in Umm Al Dalkh field from 12% to 40%. INPEX was awarded a 5% stake in the Abu Dhabi Onshore Concession in 2015.