Oil & Gas

Adnoc signs 15-year supply deal for Ruwais LNG

November 8, 2024, 5:48 PM

Sefe CEO Dr Egbert Laege and Adnoc executive vice president Fatema Al Nuaimi sign the long-term LNG supply deal — Sefe CEO Dr Egbert Laege and Adnoc executive vice-president Fatema Al Nuaimi sign the long-term LNG supply deal

Agreement with Germany’s Sefe
First long-term deal for Ruwais gas
Deliveries to start in 2028

Adnoc, the Abu Dhabi state oil company, has signed its first long-term sales and purchase agreement for the lower-carbon Ruwais liquefied natural gas (LNG) project.

The 15-year, 1 million tonnes per annum (mtpa) agreement was signed with Sefe Marketing and Trading Singapore, a subsidiary of Germany’s Sefe – Securing Energy For Europe – at the Adipec energy conference in Abu Dhabi.

The LNG will primarily be sourced from the Ruwais LNG project, with deliveries expected to start in 2028 upon commencement of its commercial operations, Adnoc said in a statement.

To date, more than seven mtpa of Ruwais LNG project’s production capacity has been committed to international customers through long-term agreements.

The agreement builds on the UAE-Germany Energy Security and Industry Accelerator signed in 2022, which aims to boost projects of joint interest in energy security and decarbonisation.

Adnoc also awarded contracts valued at AED720 million ($196 million) to 11 companies for local manufacturing of a wide range of products across its value chain. The contracts were awarded under its “in-country value” (ICV) programme.

Since its inception in 2018, Adnoc’s ICV programme has brought $51 billion (AED187 billion) in value to the UAE economy and created 14,000 jobs for Emiratis.

In another deal signed at Adipec, Adnoc awarded a contract worth up to $490 million (AED1.79 billion) to expand the scope of the world’s largest combined three-dimensional (3D) onshore and offshore seismic survey to discover new oil and gas resources in the emirate.

The contract was awarded to BGP, a subsidiary of China National Petroleum Company (CNPC), with more than 70 percent of the award value expected to flow back into the UAE’s economy under the ICV programme.

Started in 2018, the seismic survey will cover 85,000 sq km across onshore and offshore areas in Abu Dhabi.

Adnoc’s CEO, Sultan Al Jaber, said on Monday that the state oil company is using highly autonomous artificial intelligence, known as agentic AI, for the first time to help increase the accuracy of its production forecasts.

Its EnergyAI programme will increase the accuracy of production forecasts by up to 90 percent, said Al Jaber, who is also the UAE’s minister of industry and advanced technology.

Adnoc has also announced plans to scale up a carbon-to-rock project with the Omani company 44.01 in Fujairah.

Adnoc and 44.01 permanently mineralised 10 tonnes of CO2 in Fujairah in under 100 days, and now the two companies will scale up the project, aiming to mineralise 300 tonnes of CO2.