ADNOC Partners With EnBW In 15-Year LNG Supply Agreement For Ruwais Project

ADNOC has formalised a third Sales and Purchase Agreement (SPA) for the Ruwais liquefied natural gas (LNG) project with EnBW Energie Baden-Württemberg AG. This 15-year agreement will supply 0.6 million tonnes per annum (mtpa) of LNG, transforming a previous Heads of Agreement into a definitive contract. The LNG will primarily be sourced from the Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi, with deliveries starting in 2028.

The Ruwais LNG project is currently under development and is expected to commence commercial operations in 2028. So far, over 8 mtpa of its 9.6 mtpa production capacity has been committed to international customers through long-term agreements. This deal with EnBW marks ADNOC’s second SPA with a German company for Ruwais LNG, following a similar agreement with SEFE Marketing and Trading Singapore Pte Ltd.

Fatema Al Nuaimi, ADNOC Executive Vice President of Downstream Business Management, expressed satisfaction with the partnership: "We are very pleased to partner with EnBW, one of the largest energy supply companies in Germany, in our second Sales and Purchase Agreement to the country from the Ruwais LNG project. This partnership underscores ADNOC’s dedication to fostering sustainable and strategic energy collaborations."

This agreement builds on the UAE-Germany Energy Security and Industry Accelerator (ESIA) agreement signed in 2022. It aims to enhance cooperation in energy security, decarbonisation, and lower-carbon fuels. Additionally, it advances the Joint Declaration of Intent for Sustainable Energy Cooperation between UAE's Ministry of Industry and Advanced Technology and Germany's Baden-Württemberg state.

In November 2024, ADNOC Gas announced plans to acquire ADNOC’s 60% stake in the Ruwais LNG project at an estimated cost of $5 billion by the second half of 2028. Once completed, this project will feature two liquefaction trains each with a capacity of 4.8 mtpa, doubling ADNOC Gas’ current operated LNG production capacity to approximately 15 mtpa.

Peter Heydecker from EnBW commented on this development: "We are very pleased to establish a long-term LNG contract with ADNOC. Finalising this contract is a significant step in furthering our relationship and expanding our LNG portfolio." He emphasised their commitment to working closely with ADNOC on future opportunities within LNG and related sectors.

The collaboration between ADNOC and EnBW highlights both companies' commitment to sustainable energy solutions. By supplying lower-carbon LNG to EnBW, ADNOC enhances its partner’s energy security while contributing to global decarbonisation efforts. This move reaffirms ADNOC’s role as a reliable partner in the evolving energy landscape.

With inputs from WAM