Adnoc signs second long-term agreement for Ruwais LNG plant
Top officials during the signing ceremony in Abu Dhabi.
The LNG will primarily be sourced from Adnoc’s lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi. The Ruwais LNG plant has been designed to run on clean power and will leverage the latest technologies and Artificial Intelligence (AI) tools to drive efficiency.
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. The deliveries are expected to start in 2028, upon commencement of the facility’s commercial operations.
Fatema Al Nuaimi, Executive Vice President, Downstream Business Management at Adnoc, 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.” 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, decarbonisation and climate action. It builds upon Adnoc’s delivery of the first LNG cargo from the Middle East to Germany in 2023.
Frédéric Barnaud, Chief Executive Officer of SEFE Marketing & Trading and Chief Commercial Officer of SEFE, 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. We aim to further build on our existing relationship and explore joint low-carbon energy developments.” Natural gas plays a crucial role as a transitional fuel, generating lower-carbon emissions compared to other fossil fuels. The Ruwais LNG project is set to be the first LNG export facility in the Middle East and North Africa region to run on clean power. When completed, the project, which consists of two 4.8mmtpa LNG liquefaction trains with a total capacity of 9.6mmtpa, will more than double Adnoc’s LNG production capacity to around 15mmtpa, to help meet increased global demand for natural gas. The project is being designed to leverage AI, digitalisation and the latest advanced technology to drive efficiency and safety across the new facility.
The LNG 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.
Adnoc recently signed a 15-years gas sales agreement with the Dubai Supply Authority, DUSUP, for the supply of natural gas, to help meet Dubai’s energy needs.
The agreement was signed at Adnoc’s headquarters by Sheikh Ahmed Bin Saeed Al Maktoum, Director-General of DUSUP, and Dr Sultan Ahmed Al Jaber, Minister of State and Adnoc Group CEO.
Al Maktoum said, “Twenty years ago this month I had the privilege to sign the gas supply agreement drawn up under the direction of the Founding Father, the Late Sheikh Zayed Bin Sultan Al Nahyan, and the Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, that resulted in Adnoc constructing the Taweelah – Jebel Ali pipeline and the beginning of gas deliveries from Adnoc to Dubai in 2001. It gives me great pleasure to sign again for DUSUP for the continuation of the contract. In doing so, we believe that we are not only extending energy cooperation between Abu Dhabi and Dubai in time, but also building on the foundations, originally laid in 1998 and reinforced over the years, to expand the breadth and depth of our energy relations now and in the future.”
Dr. Al Jaber said, “This agreement underscores Adnoc’s commitment to meeting the growing energy needs of the UAE. We will harness our gas resources for the benefit of the nation, working in close collaboration with our customers and partners, by making smart investments in the development of additional gas reserves. This will enable us to deliver against our strategic objective of providing a sustainable and economic supply of gas to the UAE.”
As part of its 2030 smart growth strategy, ADNOC plans to access undeveloped tight reservoirs, tap into its gas caps and expand sour gas production, ensuring that it delivers a sustainable and economic gas supply to meet the UAE’s growing demand for energy. In addition, it has commenced an exploration drilling programme to explore for, and appraise, the potential of individual gas deposits in tight reservoirs.
