Abu Dhabi National Oil Company (ADNOC) signed a long-term supply agreement on Wednesday for its Ruwais LNG project, which is currently under development. The deal will see ADNOC deliver 1 million tons of liquefied natural gas (LNG) annually to German energy company SEFE for the next 15 years.
The agreement finalized on Wednesday follows a Heads of Agreement (HoA) between ADNOC and SEFE, announced in March. This marks the transition from a preliminary agreement to a formal contract.
The LNG supplied to SEFE will mainly come from ADNOC’s Ruwais LNG project, with deliveries expected to begin in 2028, when the project starts its commercial operations. ADNOC has already secured over 7 million tons per annum (mtpa) of capacity from the Ruwais LNG project through long-term contracts with international customers.
Fatema Al Nuaimi, Executive Vice President of ADNOC’s Downstream Business Management, commented on the deal, saying, “Natural gas makes up more than a quarter of Germany’s energy supply, and we are proud to support the country’s energy security with this important agreement for the lower-carbon Ruwais LNG project.”
In June, ADNOC made the final investment decision to proceed with the Ruwais LNG project, which will more than double the UAE’s current LNG production capacity. The project will include two LNG liquefaction trains, each with a capacity of 4.8 million metric tons per annum (mmtpa), bringing the total capacity to 9.6 mmtpa. This will raise ADNOC’s LNG production capacity in the UAE to approximately 15 mmtpa as the company expands its global LNG presence.
Located in Al Ruwais Industrial City in the Al Dhafra region of Abu Dhabi, the Ruwais LNG facility will be the first in the Middle East and North Africa (MENA) region to operate on clean power, making it one of the world’s lowest-carbon intensity LNG plants, according to ADNOC.
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