Abu Dhabi National Oil Company (Adnoc) has signed a 15-year heads of agreement for liquefied natural gas (LNG) with EnBW Energie Baden-Württemberg AG, one of the largest energy companies in Germany.
The agreement is for the delivery of 0.6 million metric tons per annum (mtpa) of LNG, which will primarily be sourced from Adnoc’s lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City in Abu Dhabi, United Arab Emirates (UAE).
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 mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa, will more than double Adnoc’s LNG production capacity to around 15 mtpa.
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 minimize emissions and drive efficiency, Adnoc said in a news release Wednesday.
The agreement marks the third long-term LNG supply agreement from the project. Deliveries are expected to start in 2028, upon the start of commercial operations.
Fatema Al Nuaimi, Adnoc Executive Vice President for 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”.
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 UAE-Germany Energy Security and Industry Accelerator (ESIA), signed in 2022, aims to advance cooperation in energy security, decarbonization and lower-carbon fuels, according to the release.
In March, Adnoc 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 1 mtpa of LNG.
The LNG will also primarily be sourced from Adnoc’s low-carbon Ruwais LNG project. Deliveries are expected to start in 2028, upon the start of the facility’s commercial operations, according to an earlier news release.
Earlier, TJN Ruwais JV, a joint venture led by Technip Energies NV, received a limited notice to proceed from Adnoc to begin early engineering, procurement and construction (EPC) activities at the Ruwais low-carbon LNG project. The joint venture includes JGC Holdings Corporation and National Petroleum Construction Company (NPCC).
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