Abu Dhabi National Oil Company (ADNOC) has signed a sales and purchase agreement (SPA) with Germany’s energy supply company EnBW Energie Baden-Württemberg (EnBW) for gas from its lower-carbon Ruwais liquefied natural gas (LNG) project.
The deal for supplying 0.6 million tonnes per annum (mtpa) of LNG over 15 years formalizes the heads of agreement (HoA) the duo inked in May . The LNG will primarily be sourced from the Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi.
The SPA with EnBW is ADNOC’s second with a German company and third overall for Ruwais LNG. It follows an agreement signed in November with Germany’s SEFE Marketing and Trading and a deal with Malaysia’s Petronas inked in early December .
According to the UAE player, Ruwais LNG will be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, making it one of the lowest-carbon-intensity LNG plants in the world.
Fatema Al Nuaimi , ADNOC Executive Vice President, Downstream Business Management, said: “By supplying lower-carbon LNG to EnBW, we are not only enhancing our partner’s energy security but also contributing to decarbonization efforts, reaffirming ADNOC’s position as a trusted partner in the evolving energy landscape.”
As stated by the energy major, the latest agreement builds on the UAE-Germany Energy Security and Industry Accelerator (ESIA) agreement. Signed by the two countries in 2022 , the deal aims to boost collaboration in areas such as energy security, decarbonization, and lower-carbon fuels.
The agreement is also said to further advance the Joint Declaration of Intent for Sustainable Energy Cooperation the UAE’s Ministry of Industry and Advanced Technology and the German state of Baden-Württemberg inked in February 2024.
“We are very pleased to establish a long-term LNG contract with ADNOC. Finalizing this contract is a significant step in furthering our relationship and expanding our LNG portfolio,” noted Peter Heydecker , EnBW Board Member for Sustainable Generation Infrastructure.
Once completed, the Ruwais LNG plant will have a combined capacity of 9.6 mtpa, comprising two 4.8-mtpa trains, with deliveries scheduled to start in 2028. According to ADNOC, 8 mtpa of the project’s production capacity has been committed through long-term agreements with international players such as ENN LNG and Osaka Gas .
Last month, ADNOC Gas disclosed that it expects to acquire its parent company’s 60% stake in Ruwais LNG in the second half of 2028. This is set to push its existing operated LNG production capacity to around 15 mtpa, more than double what it currently processes.