ADNOC seals second long-term LNG deal for Ruwais project

Following the recent start of early engineering, procurement, and construction (EPC) activities, Abu Dhabi National Oil Company (ADNOC) has entered into a second LNG agreement for its low-carbon Ruwais LNG project.

On March 18, ADNOC announced the signing of a 15-year heads of agreement (HOA) with SEFE Marketing & Trading Singapore, a subsidiary of Germany’s SEFE Securing Energy for Europe, for the delivery of 1 million metric tonnes per annum (mmtpa) of LNG.

ADNOC said the LNG will be primarily sourced from the Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi.

This is the second long-term LNG supply agreement for the project, following the first 15-year HOA with China’s ENN Natural Gas signed in December 2023.

The deliveries are scheduled to start in 2028, upon the commencement of the facility’s commercial operations.

According to ADNOC, the new 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, decarbonization, and climate action. It also 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.” 

Fatema Al Nuaimi, Executive Vice President, Downstream Business Management at ADNOC, commented: “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.” 

The Ruwais LNG project is set to be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, making it one of the lowest carbon intensity LNG plants in the world, supporting ADNOC’s accelerated Net Zero by 2045 ambition.

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, from 6 mmtpa to around 15 mmtpa.

The project is being designed to leverage AI, digitalization and the latest advanced technology.

Just recently, ADNOC issued a limited notice to proceed for early EPC activities to a joint venture comprising Technip Energies, JGC Corporation, and National Petroleum Construction Company, marking a significant milestone as the project advances toward the final investment decision (FID), which is expected this year.