Adnoc strikes LNG supply deal with Germany

Adnoc

The Abu Dhabi National Oil Company (Adnoc) has signed a 15-year liquefied natural gas (LNG) supply agreement with German energy major Energie Baden-Württemberg AG.

The agreement includes the delivery of 0.6 million tonnes per annum (mtpa) of LNG, primarily sourced from Adnoc’s lower-carbon Ruwais LNG project, currently under development in Abu Dhabi’s Al Ruwais Industrial City.

The Ruwais plant will be the first LNG export facility in the Middle East and Africa region to run on clean power, leveraging the latest technologies and artificial intelligence (AI) tools to minimise emissions and drive efficiency. 

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The agreement is the third long-term LNG supply deal for the Ruwais plant. The deliveries are expected to start in 2028 upon the start of the facility’s commercial operations.

The new agreement builds on the UAE-Germany energy security and industry accelerator (ESIA) and supports Germany’s drive to diversify its energy sources, said Adnoc executive vice president, downstream business management Fatema Al Nuaimi.

ESIA, signed in 2022, aims to advance cooperation in energy security, decarbonisation and lower-carbon fuels.

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The LNG agreement is contingent upon a final investment decision on the project, including regulatory approvals, and the final negotiations between the two companies.

Adnoc in March awarded the early engineering, procurement and construction work contract to a joint venture between France’s Technip Energies, Japan’s JGC Corporation and Abu Dhabi’s National Petroleum Construction Company for the Ruwais plant.

Once completed, the project is set to be one of the world’s lowest-carbon intensity LNG plants.  

Ruwais LNG will consist of two 4.8 mtpa LNG liquefaction trains with a total capacity of 9.6 million mtpa. It will more than double Adnoc’s LNG production capacity from 6 million mtpa to around 15 million.