Japanese city gas provider Osaka Gas (9532.T), opens new tab said on Tuesday it had 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) to secure stable supplies.

This marks the first long-term LNG deal between Osaka Gas and ADNOC, the Japanese company said in a statement, adding that the delivery 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 is expected 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.

"After a comprehensive assessment, we thought the terms and conditions were reasonable," a company spokesperson said, without providing any details.

He declined to specify the duration of the long-term contract.

"This long-term contract will help supplement expiring contracts and diversify procurement sources," the spokesperson said, without mentioning any specific contracts that are expiring.

Osaka Gas is one of Japan's biggest LNG buyers, handling 11.5 million tons of the super-chilled fuel in the financial year ending March 31, including 6.12 million tons for its own consumption.