Abu Dhabi National Oil Company (Adnoc) has taken a significant step in expanding its global energy footprint by signing a new 15-year heads of agreement with SEFE Marketing & Trading Singapore Pte Ltd., a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH. This deal, announced on Monday, involves the supply of 1 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG) sourced primarily from Adnoc’s innovative Ruwais LNG project.
The Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi, represents a cutting-edge venture in the energy sector. Designed to operate on clean power, the facility will incorporate the latest technologies and Artificial Intelligence (AI) tools to enhance efficiency. This agreement marks the second long-term LNG supply contract from the Ruwais project, following a similar 15-year agreement with China’s ENN Natural Gas signed in December 2023. LNG deliveries under this new contract are expected to commence in 2028, aligning with the start of the facility’s commercial operations.
Fatema Al Nuaimi, Executive Vice President of Downstream Business Management at Adnoc, emphasized the significance of this agreement. “This first LNG agreement with a European company from the Ruwais lower-carbon LNG project highlights Adnoc’s role as a dependable global energy supplier,” she stated. She also noted the critical role of gas in Germany’s energy landscape and Adnoc’s commitment to supporting Germany’s efforts to diversify its energy sources and boost energy security.
The agreement reinforces the Energy Security and Industry Accelerator (ESIA) pact signed between the UAE and Germany in 2022, fostering stronger bilateral cooperation in energy security, decarbonization, and climate action. It builds on the momentum of Adnoc’s delivery of the first LNG cargo from the Middle East to Germany in 2023.
Frédéric Barnaud, CEO of SEFE Marketing & Trading and Chief Commercial Officer of SEFE, reflected on the longstanding partnership with Adnoc. “This supply agreement for the Ruwais LNG project, poised to be one of the lowest-carbon intensity LNG projects globally, opens a new chapter in our collaboration,” he said. He expressed SEFE’s eagerness to further strengthen this relationship and explore joint low-carbon energy initiatives.
The Ruwais LNG project is set to become the first LNG export facility in the Middle East and North Africa region to run on clean power, more than doubling Adnoc’s LNG production capacity to approximately 15mmtpa. This expansion will help meet the growing global demand for natural gas, a crucial transitional fuel known for generating lower-carbon emissions than other fossil fuels. The project, featuring two 4.8mmtpa LNG liquefaction trains with a total capacity of 9.6mmtpa, aims to incorporate AI and digitalization for operational efficiency and safety.
The execution of this agreement is contingent upon a final investment decision on the Ruwais project, including necessary regulatory approvals and the finalization of a definitive Sale and Purchase Agreement between Adnoc and SEFE. This agreement represents a strategic step for Adnoc in strengthening its global energy supply chains and supporting the transition to cleaner energy sources.
