ADNOC Finalises Long-Term Sales Agreement For Lower-Carbon Ruwais LNG Project

ADNOC has confirmed a significant agreement at ADIPEC, marking the first long-term Sales and Purchase Agreement (SPA) for the Ruwais liquefied natural gas (LNG) project. This project is being developed in Al Ruwais Industrial City, Abu Dhabi. The SPA finalises a previous Heads of Agreement between ADNOC and SEFE from March into a binding contract.

The 15-year SPA involves SEFE Marketing and Trading Singapore Pte Ltd., a subsidiary of Germany's SEFE Securing Energy for Europe GmbH. It covers 1 million tonnes per annum (mtpa) of LNG, primarily sourced from the Ruwais LNG project. Deliveries are set to begin in 2028 when commercial operations commence.

Currently, over 7 mtpa of the Ruwais LNG project's production capacity is already committed to international clients through long-term agreements. Fatema Al Nuaimi, Executive Vice President of Downstream Business Management at ADNOC, highlighted that natural gas constitutes more than a quarter of Germany's energy supply. She expressed satisfaction in supporting Germany's energy security through this agreement with SEFE.

The SPA aligns with the UAE-Germany Energy Security and Industry Accelerator (ESIA), signed in 2022, which focuses on enhancing cooperation in energy security, decarbonisation, and lower-carbon fuels. Dr. Egbert Laege, CEO of SEFE, remarked on the partnership's role in diversifying energy sources responsibly and boosting energy supply security for Germany and Europe.

Dr. Laege also emphasised that this collaboration aids SEFE's ambition to lead the energy transition and become a major player in Europe's low-carbon economy. The Ruwais LNG plant will be the first LNG export facility in the Middle East and Africa to operate on clean power, making it one of the world's lowest carbon-intensity LNG plants.

Fatema Al Nuaimi further stated that as demand for natural gas rises, ADNOC is committed to providing greater access to lower-carbon gas to power homes, fuel industries, and maintain connectivity globally. ADNOC aims to strengthen its position as a reliable global supplier of natural gas.

This agreement represents an important step towards ensuring energy security while supporting decarbonisation efforts across Europe. By leveraging clean power for its operations, the Ruwais LNG plant sets a precedent for sustainable energy practices within the region.

The collaboration between ADNOC and SEFE underscores their shared commitment to advancing low-carbon solutions while meeting growing global energy demands efficiently and sustainably.

With inputs from WAM