December 16, 2024

Abu Dhabi

SPA with one of Germany’s largest energy infrastructure operators converts previous Heads of Agreement into a binding agreement

Over 8 mtpa of Ruwais LNG’s 9.6 mtpa production capacity is committed to international customers through long-term agreements

Agreement is ADNOC’s second SPA with a German energy company for Ruwais LNG, building on the UAE-Germany Energy Security and Industry Accelerator initiative

Abu Dhabi, UAE – December 16, 2024: ADNOC announced today it has signed a third Sales and Purchase Agreement (SPA) for the lower-carbon Ruwais liquefied natural gas (LNG) project, with Germany’s EnBW Energie Baden-Württemberg AG (EnBW), one of the largest operators of energy infrastructure in Germany and across Europe. The 15-year SPA for supplying 0.6 million tonnes per annum (mtpa) of LNG converts a previous Heads of Agreement between ADNOC and EnBW into a definitive agreement.

The LNG will primarily be sourced from the Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi. Deliveries are expected to start in 2028 upon commencement of its commercial operations. To date, over 8 mtpa of the project’s 9.6 mtpa production capacity has been committed to international customers through long-term agreements.

The agreement with EnBW is ADNOC’s second SPA with a German company for Ruwais LNG, following a 15-year, 1 mtpa agreement signed in November with SEFE Marketing and Trading Singapore Pte Ltd., a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH.

Fatema Al Nuaimi, ADNOC Executive Vice President, Downstream Business Management, 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 decarbonization efforts, reaffirming ADNOC’s position as a trusted partner in the evolving energy landscape.”

The agreement builds on the UAE-Germany Energy Security and Industry Accelerator (ESIA) agreement, signed by the UAE and Germany in 2022, which aims to advance cooperation in energy security, decarbonization and lower-carbon fuels. The agreement also further advances the Joint Declaration of Intent for Sustainable Energy Cooperation between the Ministry of Industry and Advanced Technology of the UAE and the German state of Baden-Württemberg signed in February 2024.

Peter Heydecker, EnBW Board Member for Sustainable Generation Infrastructure, said: “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. 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.”

ADNOC Gas announced in November 2024 that it expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, estimated at around $5 billion, in the second half of 2028. Upon completion, the project, comprising two 4.8 mtpa liquefaction trains with a combined capacity of 9.6 mtpa, will more than double ADNOC Gas’ existing operated LNG production capacity to around 15 mtpa.