ADNOC and EnBW Ink 15-Year Deal for 0.6 MTPA LNG from Ruwais

ADNOC has finalized its third Sales and Purchase Agreement (SPA) for the Ruwais LNG project with Germany’s EnBW Energie Baden-Württemberg AG (EnBW), one of Europe’s largest energy infrastructure operators. The 15-year agreement secures the supply of 0.6 million tonnes per annum (mtpa) of lower-carbon LNG and formalizes a prior Heads of Agreement between the two companies. Deliveries will commence in 2028, aligning with the start of commercial operations at the Ruwais LNG facility, currently under development in Al Ruwais Industrial City, Abu Dhabi.

With this latest SPA, over 8 mtpa of the Ruwais project’s total 9.6 mtpa production capacity is now allocated to international customers. Notably, this is ADNOC’s second long-term LNG agreement with a German company, following a 15-year deal for 1 mtpa signed in November 2023 with SEFE Marketing and Trading Singapore Pte Ltd., a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH.

Fatema Al Nuaimi, ADNOC Executive Vice President of Downstream Business Management, expressed satisfaction with the partnership, stating: “We are delighted to collaborate with EnBW, a key energy supplier in Germany, through this second SPA for the Ruwais LNG project. This agreement highlights ADNOC’s commitment to fostering sustainable energy collaborations. By providing lower-carbon LNG, we enhance energy security for our partners while contributing to global decarbonization efforts.”

The deal aligns with the UAE-Germany Energy Security and Industry Accelerator (ESIA) agreement signed in 2022, which promotes cooperation in energy security and sustainable fuel solutions. It also advances the Joint Declaration of Intent for Sustainable Energy Cooperation signed earlier in 2024 between the UAE’s Ministry of Industry and Advanced Technology and the German state of Baden-Württemberg.

Peter Heydecker, EnBW Board Member for Sustainable Generation Infrastructure, emphasized the significance of the agreement, saying: “Establishing a long-term LNG contract with ADNOC is a pivotal step in expanding our LNG portfolio. We value this strategic partnership and look forward to mutual success in LNG and adjacent ventures.”

Additionally, ADNOC Gas announced plans to acquire ADNOC’s 60% stake in the Ruwais LNG project by the second half of 2028, an investment valued at approximately $5 billion. Once completed, the facility, featuring two liquefaction trains with a combined capacity of 9.6 mtpa, will more than double ADNOC Gas’ current operated LNG production capacity to 15 mtpa, reinforcing its position as a leading global energy supplier.

The Abu Dhabi National Oil Company (ADNOC), the state-owned energy giant of the United Arab Emirates (UAE), is among the few oil companies globally making significant investments to boost oil production despite increasing global pressure to curtail output in response to climate change concerns.