ADNOC Signs Pair of Deals for Ruwais LNG Project

The project advances toward the final investment decision expected this year.

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Source: ADNOC

ADNOC said it has signed a 15-year supply agreement with Germany’s Securing Energy for Europe (SEFE) to deliver 1 mtpa of LNG.

According to the company, the LNG will primarily be sourced from its lower-carbon Ruwais LNG project currently under development in Al Ruwais Industrial City, Abu Dhabi.

The plant will be the first LNG project in the Middle East and North Africa region to run on clean power, making it one of the lowest-carbon-intensity LNG facilities in the world, according to ADNOC.

The project consists of two 4.8-mtpa natural gas liquefaction trains with a total capacity of 9.6 mtpa. When complete, it will more than double ADNOC’s LNG production target capacity to meet the increased global demand for natural gas.

The agreement with SEFE is the second for the project, with the first being a 15-year agreement with China’s ENN Natural Gas signed in December 2023. Upon startup of the facility's commercial operations, deliveries are expected to begin in 2028.

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

This LNG supply agreement reinforces the Energy Security and Industry Accelerator agreement, signed by the UAE and Germany in 2022. It further strengthens bilateral cooperation in energy security, decarbonization, and climate action. It builds upon ADNOC's delivery of the first LNG cargo from the Middle East to Germany in 2023.

“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. We aim to further build on our existing relationship and explore joint low-carbon energy developments,” said Frédéric Barnaud, chief commercial officer of SEFE.

The project is being designed to leverage artificial intelligence, digitalization, and the latest advanced technology to drive efficiency and safety across the new facility, according to ADNOC.

The LNG agreement is contingent upon the project's final investment decision, including regulatory approvals and the negotiation of a definitive sale and purchase agreement between the two companies.

The award comes just days after Technip Energies-led joint venture received limited notice to proceed from ADNOC to begin early engineering, procurement, and construction activities for the Ruwais LNG project.

“The Ruwais LNG project reflects the future. It innovates for a decarbonized LNG industry. With zero-carbon energy sources to power electrified LNG trains, we are setting a new standard for LNG production,” said Arnaud Pieton, chief executive of Technip Energies.

In October 2023, ADNOC awarded Baker Hughes a contract to supply the two all-electric liquefaction systems for the Ruwais project.