ADNOC has signed a sales and purchase agreement to supply Germany’s EnBW with 0.6 million tons per annum (mtpa) of liquefied natural gas over the period of 15 years which will be primarily sourced from the lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City in Abu Dhabi.
The LNG deliveries is expected to start in 2028 upon the project’s commercial operations. To date, over 8 mtpa of the project’s 9.6 mtpa production capacity has been committed to international customers through long-term agreements.
This agreement with EnBW converts the previous Heads of Agreement into a definitive one. It also marks ADNOC’s second SPA with a German company for Ruwais LNG, following a 15-year, 1 mtpa agreement signed in November with SEFE Marketing and Trading Singapore Pte Ltd., a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH.
“By supplying lower-carbon LNG to EnBW, we are not only enhancing our partner’s energy security but also contributing to decarbonization efforts, reaffirming ADNOC’s position as a trusted partner in the evolving energy landscape,” said Fatema Al Nuaimi, ADNOC Executive Vice President, Downstream Business Management.
The agreement builds on the UAE-Germany Energy Security and Industry Accelerator (ESIA) agreement signed in 2022. It also advances the Joint Declaration of Intent signed in February 2024 for Sustainable Energy Cooperation between the UAE’s Ministry of Industry and Advanced Technology and the German state of Baden-Württemberg, ADNOC said on Monday
“Finalizing this contract is a significant step in furthering our relationship and expanding our LNG portfolio. We will continue to work with our esteemed partner ADNOC to develop other opportunities in LNG and adjacent businesses and look forward to a mutually beneficial long-term relationship and joint business success,” said Peter Heydecker, EnBW Board Member for Sustainable Generation Infrastructure.
ADNOC Gas announced in November 2024 that it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, estimated at around $5 billion, in the second half of 2028.
Upon completion, the project, comprising two 4.8 mtpa liquefaction trains with a combined capacity of 9.6 mtpa, will more than double ADNOC Gas’ existing operated LNG production capacity to around 15 mtpa.