ADNOC signs 15-year sales deal with SEFE for Ruwais LNG supply at ADIPEC 2024

Photo : Abu Dhabi Media Office

At ADIPEC 2024, ADNOC made a significant announcement with the signing of the first long-term sales and purchase agreement (SPA) for the lower-carbon Ruwais liquefied natural gas (LNG) project. The agreement, which is currently in development in Al Ruwais Industrial City, Abu Dhabi, follows the Heads of Agreement (HOA) signed earlier this year between ADNOC and SEFE, converting it into a formal and binding contract.

The SPA, spanning 15 years, is for a supply of 1 million tonnes per annum (mtpa) of LNG, and was signed with SEFE Marketing and Trading Singapore Pte Ltd., a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH. The LNG under this agreement will primarily be sourced from the Ruwais LNG project, with initial deliveries expected to begin in 2028, marking the start of commercial operations at the plant.

This deal further cements ADNOC’s commitment to the growing international demand for natural gas, especially in regions like Europe, where natural gas plays a crucial role in meeting energy needs. To date, the Ruwais LNG project has already committed over 7 mtpa of its production capacity to international customers, all through long-term agreements, further reinforcing the growing role of ADNOC as a reliable energy partner.

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Fatema Al Nuaimi, Executive Vice President of Downstream Business Management at ADNOC, commented on the agreement, emphasizing the importance of natural gas in meeting global energy demands. She noted, "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."

She continued, "As demand for natural gas continues to rise, ADNOC is ensuring increased access to lower-carbon gas that will power homes, fuel industries, and keep people connected. We remain committed to our role as a reliable global supplier of natural gas."

This SPA is part of a broader energy collaboration between the UAE and Germany, building on the UAE-Germany Energy Security and Industry Accelerator (ESIA) signed in 2022. The ESIA aims to foster greater cooperation in the areas of energy security, decarbonization, and lower-carbon fuels. Through this partnership, ADNOC and SEFE aim to enhance the security of energy supplies to Germany and Europe while supporting the transition to a low-carbon future.

Dr. Egbert Laege, CEO of SEFE, highlighted the importance of this partnership for both parties. He stated, "This partnership with ADNOC supports our efforts to responsibly diversify our energy sources, enhance the security of energy supply for Germany and Europe, and help our customers on their decarbonization journey. It is an important step for SEFE’s ambition to drive the energy transition and position itself as a European energy major in the low-carbon economy."

The Ruwais LNG project stands out as a flagship facility not only for its scale but also for its environmental focus. Once operational, it will become the first LNG export facility in the Middle East and Africa region to run on clean power, making it one of the lowest-carbon intensity LNG plants in the world. This innovative approach aligns with ADNOC’s broader sustainability goals and underscores the company’s commitment to supporting the global energy transition.

The Ruwais LNG project is set to be a critical component in meeting the energy needs of customers across the world while minimizing its environmental impact, setting a new standard for low-carbon energy production in the LNG sector.