ADNOC Inks Second Long-Term Deal for Ruwais LNG Project
ADNOC has signed a 15-year Heads of Agreement with SEFE Marketing & Trading Singapore Pte Ltd., a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH, for the delivery of one million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG).
The LNG will mainly come from ADNOC’s lower-carbon Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi, designed to operate on clean power and utilize cutting-edge technologies and Artificial Intelligence (AI) tools for enhanced efficiency.
This marks the second long-term LNG supply agreement for the Ruwais LNG project, following the 15-year deal with China’s ENN Natural Gas signed in December 2023, with deliveries set to commence in 2028.
Fatema Al Nuaimi, Executive Vice President, Downstream Business Management at ADNOC, said, “This LNG agreement, the first with a European company from the Ruwais lower-carbon LNG project, underscores ADNOC’s position as a reliable and responsible global energy provider. Gas accounts for almost a quarter of Germany’s primary energy use, and we look forward to supporting its efforts to diversify its energy sources and enhance its energy security.”
The agreement strengthens bilateral cooperation between the UAE and Germany in energy security, decarbonization, and climate action, building on ADNOC’s earlier delivery of LNG to Germany in 2023.
Frédéric Barnaud, Chief Executive Officer of SEFE Marketing & Trading and Chief Commercial Officer of SEFE, said, “SEFE and ADNOC have a long and productive partnership, spanning over 15 years. This LNG supply agreement for the Ruwais LNG project, set to be one of the lowest-carbon intensity LNG projects in the world, marks the start of a new chapter. We aim to further build on our existing relationship and explore joint low-carbon energy developments.”
The Ruwais LNG project is poised to be the first LNG export facility in the Middle East and North Africa region to run on clean power, leveraging AI, digitalization, and advanced technology for efficiency and safety.
This LNG supply agreement reinforces the Energy Security and Industry Accelerator (ESIA) agreement, signed by the UAE and Germany in 2022, further strengthening bilateral cooperation in energy security, decarbonisation and climate action. It builds upon ADNOC’s delivery of the first LNG cargo from the Middle East to Germany in 2023.
Frédéric Barnaud, Chief Executive Officer of SEFE Marketing & Trading and Chief Commercial Officer of SEFE, said, “SEFE and ADNOC have a long and productive partnership, spanning over 15 years. This LNG supply agreement for the Ruwais LNG project, set to be one of the lowest-carbon intensity LNG projects in the world, marks the start of a new chapter. We aim to further build on our existing relationship and explore joint low-carbon energy developments.”
Natural gas plays a crucial role as a transitional fuel, generating lower-carbon emissions compared to other fossil fuels. The Ruwais LNG project is set to be the first LNG export facility in the Middle East and North Africa region to run on clean power. When completed, the project, which consists of two 4.8mmtpa LNG liquefaction trains with a total capacity of 9.6mmtpa, will more than double ADNOC’s LNG production capacity to around 15mmtpa, to help meet increased global demand for natural gas. The project is being designed to leverage AI, digitalisation and the latest advanced technology to drive efficiency and safety across the new facility.
The LNG agreement is contingent upon a final investment decision (FID) on the project, including regulatory approvals, and the negotiation of a definitive Sale and Purchase Agreement between the two companies.
Marwan Naim Nijmeh is Chief Legal Officer at ADNOC.