Adnoc announced on Wednesday the signing of a 15-year heads of agreement (LNG agreement) with EnBW Energie Baden-Württemberg AG (EnBW), one of the largest energy companies in Germany, for the delivery of 0.6 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG).
The LNG will primarily be sourced from Adnoc’s lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi.
The Ruwais LNG plant is set to be the first LNG export facility in the Middle East and Africa region to run on clean power and will leverage the latest technologies and artificial intelligence (AI) tools to minimise emissions and drive efficiency.
This agreement marks the third long-term LNG supply agreement from the project. The deliveries are expected to start in 2028, upon commencement of commercial operations.
Fatema Al Nuaimi, Adnoc executive vice president of downstream business management, said: “The Ruwais LNG project continues to gain momentum, reinforcing Adnoc’s position as a reliable global natural gas provider. This new agreement builds on the UAE-Germany Energy Security and Industry Accelerator and will support Germany as it strives to diversify its energy sources and enhance its energy security.”
The UAE-Germany Energy Security and Industry Accelerator (ESIA), signed in 2022, aims to advance cooperation in energy security, decarbonisation and lower-carbon fuels.
Peter Heydecker, EnBW’s board member for sustainable generation infrastructure, said, “We are delighted that EnBW has signed its first LNG contract in the Middle East with our experienced partner Adnoc. In doing so, we are taking the next step in terms of diversifying our procurement portfolio and establishing our own LNG value chain. We can also use the experience gained here for our medium-term goal of establishing an import structure for green gases, since the two business fields are very similar.”
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.
When completed, the project, which consists of two 4.8 mmtpa LNG liquefaction trains with a total capacity of 9.6 mmtpa, will more than double Adnoc’s LNG production capacity to around 15mmtpa.