ADNOC And SEFE Forge 15-Year LNG Agreement For Ruwais, Enhancing Global Energy Supply

In a significant move marking the expansion of global energy partnerships, ADNOC has inked a 15-year Heads of Agreement with SEFE Marketing & Trading Singapore Pte Ltd., a subsidiary of Germany's SEFE Securing Energy for Europe GmbH. This landmark agreement entails the annual delivery of one million metric tonnes of liquefied natural gas (LNG) from ADNOC's innovative Ruwais LNG project, situated in Al Ruwais Industrial City, Abu Dhabi. Highlighting a commitment to sustainability, the Ruwais LNG plant is set to utilize clean power and incorporate advanced technologies and Artificial Intelligence (AI) to enhance efficiency.

This collaboration marks the second long-term LNG supply agreement stemming from the Ruwais LNG project, following a similar 15-year contract with China’s ENN Natural Gas announced in December 2023. The commencement of LNG deliveries is anticipated 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 as a testament to ADNOC’s role as a reliable energy provider on a global scale. She also highlighted the importance of this partnership in supporting Germany's efforts to diversify its energy sources and bolster energy security.

The agreement is a pivotal element of the Energy Security and Industry Accelerator (ESIA) agreement signed between the UAE and Germany in 2022. It aims to fortify bilateral cooperation in areas such as energy security, decarbonisation, and climate action, building on ADNOC's milestone 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 enduring partnership with ADNOC, spanning over 15 years. He expressed enthusiasm for this new chapter, which not only strengthens their relationship but also opens avenues for joint ventures in low-carbon energy developments.

The Ruwais LNG project is poised to become a leading example of sustainable energy production. As the first LNG export facility in the Middle East and North Africa region powered by clean energy, it represents a significant stride towards reducing carbon intensity in LNG projects globally. Upon completion, the facility will boast two 4.8mmtpa LNG liquefaction trains, elevating ADNOC’s LNG production capacity to approximately 15mmtpa and catering to the rising global demand for natural gas.

The realization of this ambitious project hinges on a final investment decision (FID), including regulatory approvals and the successful negotiation of a definitive Sale and Purchase Agreement between ADNOC and SEFE Marketing & Trading Singapore Pte Ltd. This strategic partnership underscores a shared commitment to fostering sustainable energy solutions that meet global needs while addressing environmental concerns.

With inputs from WAM