ADNOC has signed a 15-year sales and purchase agreement (SPA) with Germany's EnBW for the supply of 600,000 tonnes per annum (tpa) of lower-carbon LNG from the Ruwais LNG project.
This agreement converts a earlier heads of agreement signed by the two entities to a definitive agreement.
The Ruwais LNG project, currently in development in Al Ruwais Industrial City, Abu Dhabi, is expected to begin deliveries to EnBW in 2028.
With this deal, ADNOC has secured more than 8mtpa of the project's 9.6mtpa production capacity through long-term agreements with international customers.
This agreement is the third SPA signed by ADNOC for the Ruwais LNG project. It is also the second SPA signed with a German company, following a similar 15-year agreement for 1mtpa signed in November with SEFE Marketing and Trading Singapore, a subsidiary of Germany's SEFE Securing Energy for Europe.
ADNOC Downstream Business Management executive vice-president Fatema Al Nuaimi said: “We are very pleased to partner with EnBW, one of the largest energy supply companies in Germany, in our second sales and purchase agreement to the country from the Ruwais LNG project.
“This partnership underscores ADNOC’s dedication to fostering sustainable and strategic energy collaborations. By supplying lower-carbon LNG to EnBW, we are not only enhancing our partner’s energy security but also contributing to decarbonisation efforts, reaffirming ADNOC’s position as a trusted partner in the evolving energy landscape.”
The agreement is part of broader energy cooperation between the United Arab Emirates (UAE) and Germany, building on the UAE-Germany Energy Security and Industry Accelerator agreement signed in 2022.
It also aligns with the joint declaration of intent for sustainable energy cooperation between the UAE's Ministry of Industry and Advanced Technology and the German state of Baden-Württemberg, established in February 2024.
EnBW Sustainable Generation Infrastructure board member Peter Heydecker said: “We are very pleased to establish a long-term LNG contract with ADNOC. Finalising this contract is a significant step in furthering our relationship and expanding our LNG portfolio.
“We will continue to work with our esteemed partner ADNOC to develop other opportunities in LNG and adjacent businesses and look forward to a mutually beneficial long-term relationship and joint business success.”
In November 2024, ADNOC Gas announced plans to acquire a 60% stake in the Ruwais LNG project from ADNOC at an estimated cost of around $5bn (Dh18.36bn).
The acquisition, expected in the second half of 2028, will see the integration of two 4.8mtpa liquefaction trains, bringing ADNOC Gas' operated LNG production capacity to approximately 15mtpa, more than doubling its current capacity.
