Dubai: The UAE energy company ADNOC has secured its third high-profile long-term contract for LNG supply from its under-development project in Ruwais.
The 15-year 'Heads of Agreement' deal is with EnBW Energie Baden-Württemberg AG, one of the largest energy companies in Germany, and covers delivery of 0.6 million metric tonnes per annum (mmtpa) of LNG. (The first two 15-year agreements were with China’s ENN Natural Gas in December 2023 and Germany’s Securing Energy for Europe in March 2024. These were for 1 mmtpa each.)
The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, under development in Abu Dhabi's Al Ruwais Industrial City. This is to be the first LNG export facility in the Middle East and Africa region to run on clean power and will leverage new technologies and AI to minimize emissions.
The LNG deliveries are expected to start in 2028.
According to Fatema Al Nuaimi, ADNOC's Executive Vice-President, Downstream Business Management, “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.”
The UAE-Germany Energy Security and Industry Accelerator was signed in 2022 aims to advance cooperation in energy security, decarbonization and lower-carbon fuels.
For EnBW, the German company, this is the 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," said Peter Heydecker, EnBW’s Board Member for Sustainable Generation Infrastructure. "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.”
