UAE - Mubasher: Abu Dhabi National Oil Company (ADNOC) has signed a 15-year agreement with Germany’s EnBW Energie Baden-Württemberg for the delivery of 0.6 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG).
The deliveries are expected to start in 2028, according to a press release.
The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City in Abu Dhabi.
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 (ESIA) and will support Germany as it strives to diversify its energy sources and enhance its energy security,” Al Nuaimi added.
The ESIA agreement was signed in 2022 to boost cooperation in energy security, decarbonisation, and lower-carbon fuels between the UAE and Germany.
Peter Heydecker, EnBW’s Board Member for Sustainable Generation Infrastructure, stated: “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,” Heydecker noted.
The LNG agreement is contingent upon a final investment decision (FID) on the lower-carbon Ruwais LNG 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 15 mmtpa.
