ADNOC Secures Major LNG Deal with Germany's SEFE

The Abu Dhabi National Oil Company (ADNOC) has announced on November 6 a significant milestone in its ambitious expansion plans. The company has signed a 15-year, 1 million tonnes per annum (mtpa) Sales and Purchase Agreement (SPA) with SEFE Marketing and Trading Singapore Pte Ltd. SEFE is a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH.

This long-term deal solidifies ADNOC’s position as a reliable global supplier of Liquid Natural Gas (LNG), particularly as the world transitions towards cleaner energy sources. The LNG will be sourced primarily from the low-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi. The deliveries from this project are expected to begin from 2028.

The agreement strengthens the strategic partnership between the UAE and Germany, building on the UAE-Germany Energy Security and Industry Accelerator (ESIA) signed in 2022. The Ruwais LNG plant is designed to be one of the world’s lowest-carbon intensity LNG facilities, aligning with global efforts to reduce greenhouse gas emissions. It is also the first LNG export facility in the Middle eastern and African region.

The deal contributes to Germany’s energy security and diversification efforts, as the country seeks to reduce its reliance on Russian gas. This project will create significant economic opportunities for both the UAE and Germany, including job creation and revenue generation.

Fatema Al Nuaimi, Executive Vice President, Downstream Business Management at ADNOC said, “Natural gas accounts for over a quarter of Germany’s energy supply and we are very pleased to support the country’s energy security through this landmark agreement with SEFE for the lower-carbon Ruwais LNG project. As natural gas demand continues to increase, ADNOC is ensuring greater access to lower-carbon gas to power homes, fuel industries and keep the people connected, and we will continue to reinforce our role as a reliable global supplier of natural gas.”

Dr. Egbert Laege, Chief Executive Officer of SEFE said, “This partnership with ADNOC supports our efforts to responsibly diversify our energy sources, enhance security of energy supply for Germany and Europe and to support our customers on their decarbonization journey. Furthermore, it is an important step for SEFE’s ambition to drive the energy transition and become a European energy major in the low-carbon economy.”

With this latest agreement, ADNOC has now secured commitments for over 7 mtpa of the Ruwais LNG project’s production capacity which underscores the strong global demand for clean and efficient energy solutions.