Adnoc announced on Monday that it has signed a 15-year heads of agreement (LNG agreement) with SEFE Marketing & Trading Singapore Pte Ltd., a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH, for the delivery of 1 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 has been designed to run on clean power and will leverage the latest technologies and Artificial Intelligence (AI) tools to drive efficiency. This is the second long-term LNG supply agreement from the Ruwais LNG project, following the 15-year agreement with China’s ENN Natural Gas signed in December 2023. The deliveries are expected to start in 2028, upon commencement of the facility’s commercial operations.
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.”
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, digitalization 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.