UAE’s Adnoc has signed a heads of agreement with a unit of German gas importer Securing Energy for Europe (SEFE) to supply the latter with liquefied natural gas from its planned LNG terminal in Al Ruwais.
Under the deal, SEFE Marketing & Trading Singapore will buy 1 million metric tons per annum of LNG for a period of 15 years, according to Adnoc.
The deliveries, which will be primarily sourced from the Ruwais LNG plant, are expected to start in 2028, upon commencement of the facility’s commercial operations.
Adnoc said the agreement is contingent upon a final investment decision (FID) on the project, including regulatory approvals, and the negotiation of a definitive sale and purchase agreement between the two companies.
The state-owned giant said this LNG supply agreement reinforces the energy security and industry accelerator (ESIA) agreement, signed by the UAE and Germany in 2022, further strengthening bilateral cooperation in energy security, decarbonization and climate action.
Also, it builds upon Adnoc’s delivery of the first LNG cargo from the Middle East to Germany in 2023.
This is the second long-term LNG supply agreement from the Ruwais LNG project, following the 15-year agreement with China’s ENN Natural Gas signed in December 2023.
Under this deal, ENN LNG (Singapore), a unit of ENN Natural Gas, will buy 1 mtpa of LNG for a period of 15 years.
Adnoc recently also issued a limited notice to proceed for early engineering, procurement, and construction activities to a joint venture led by France’s Technip Energies for its planned LNG terminal in Al Ruwais.
The firm said it expects to take a final investment decision on the project later this year, while early civil works at the site have already started.
When completed, the project, which consists of two 4.8 mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa, will more than double Adnoc’s LNG production capacity.
Adnoc currently owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.
Last year, Adnoc announced it will build its second LNG terminal in Al Ruwais. The firm previously planned to construct the facility in Fujairah.
Adnoc Gas, the gas and LNG unit of Adnoc, also awarded US energy services firm Baker Hughes a contract for the planned LNG export terminal.
