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UAE’s ADNOC Group has signed a 15-year liquefied natural gas (LNG) supply agreement with Germany’s SAFE to deliver 1 million metric tonnes annually from the Ruwais LNG project starting in 2028.
The deal, which expands the UAE’s efforts to become a key supplier of LNG, converts a preliminary deal signed in March to a definitive sales agreement, ADNOC said in a statement.
The 15-year sales and purchase agreement was signed with SEFE Marketing and Trading Singapore Pte, a unit of Germany’s SEFE Securing Energy for Europe GmbH.
To date, more than seven mtpa of Ruwais LNG project’s production capacity has been committed to international customers through long-term agreements.
The Ruwais LNG project, currently under development in Abu Dhabi, is set to be the first LNG export facility in the Middle East and North Africa region to run on clean power. When completed, it is expected to consist of two 4.8 million mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa.
“Natural gas accounts for over a quarter of Germany’s energy supply, and we are very pleased to support the country’s energy security through this landmark agreement with SEFE for the lower-carbon Ruwais LNG project,” said Fatema Al Nuaimi, executive vice president of Downstream Business Management at ADNOC.
“As natural gas demand continues to increase, ADNOC is ensuring greater access to lower-carbon gas to power homes and fuel industries and keep people connected, and we will continue to reinforce our role as a reliable global supplier of natural gas.”
ADNOC has big ambitions in gas and LNG, which, along with renewable energy and petrochemicals, it sees as pillars for its future growth. It currently produces around six mtpa of LNG and aims to lift its capacity to 15 mtpa.
The energy firm already has existing LNG supply deals with Germany’s EnBW, Japan Petroleum Exploration Company, TotalEnergies Gas and Power, and India Oil Corporation.
Earlier in July, a consortium of global energy companies acquired a combined 40 per cent stake in the Ruwais LNG project, as the global demand for natural gas is expected to surge by more than 50 per cent by 2040.
bp, Mitsui & Co., Shell and TotalEnergies will each take a 10 per cent stake in the Ruwais LNG plant. ADNOC also signed multi-year LNG supply agreements with Shell and Mitsui to deliver 1 mtpa and 6 mtpa, respectively.
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