Offshore Technology

ADNOC signs long-term deal to supply LNG to Germany’s SEFE

This agreement marks the second long-term liquefied natural gas (LNG) supply contract for the Ruwais LNG project.

Abu Dhabi National Oil Company (ADNOC) has entered into a long-term LNG supply heads of agreement with SEFE Marketing & Trading Singapore, a subsidiary of Germany's Securing Energy for Europe (SEFE).

The 15-year agreement will see ADNOC supply one million metric tonnes per annum (mtpa) of LNG to SEFE.

For the contract, ADNOC will source LNG primarily from its low-carbon Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi.

This agreement marks the second long-term LNG supply contract for the Ruwais LNG project, following a similar 15-year contract with China’s ENN Natural Gas signed in December 2023.

The commencement of LNG deliveries to the German company is anticipated to begin in 2028, aligning with the start of the facility's commercial operations.

This supply deal is in line with the Energy Security and Industry Accelerator (ESIA) agreement signed between the United Arab Emirates and Germany in 2022.

ADNOC executive vice-president, downstream business management, Fatema Al Nuaimi, said: “This LNG agreement, the first with a European company from the Ruwais lower-carbon LNG project, underscores ADNOC’s position as a reliable and responsible global energy provider.

“Gas accounts for almost a quarter of Germany’s primary energy use, and we look forward to supporting its efforts to diversify its energy sources and enhance its energy security.” 

SEFE Marketing & Trading CEO and SEFE chief commercial officer Frédéric Barnaud said: “SEFE and ADNOC have a long and productive partnership, spanning over 15 years. This LNG supply agreement for the Ruwais LNG project, set to be one of the lowest-carbon intensity LNG projects in the world, marks the start of a new chapter.” 

Upon completion, the Ruwais LNG project, which includes two 4.8mtpa LNG liquefaction trains with a combined capacity of 9.6mtpa, will take ADNOC’s LNG production capacity to approximately 15mtpa, addressing rising global demand for natural gas.

The finalisation of the LNG agreement is subject to a final investment decision on the project.

Recently, a joint venture led by Technip Energies was granted a limited notice by ADNOC to proceed with early engineering, procurement and construction work for the Ruwais LNG project, indicating progress towards the project's realisation.