ADNOC signs 15-year, 0.6 mtpa Sales & Purchase Agreement with EnBW for Ruwais LNG project

emirates7 - ADNOC announced today that it has signed a third Sales and Purchase Agreement (SPA) for its lower-carbon Ruwais liquefied natural gas (LNG) project with Germany’s EnBW Energie Baden-Württemberg AG (EnBW), one of the largest energy infrastructure operators in Germany and Europe.

The 15-year SPA, which finalizes a previous Heads of Agreement between ADNOC and EnBW, will supply 0.6 million tonnes per annum (mtpa) of LNG. The LNG will primarily come from the Ruwais LNG project currently being developed in Al Ruwais Industrial City, Abu Dhabi, with deliveries expected to start in 2028 when commercial operations begin. So far, more than 8 mtpa of the project's 9.6 mtpa capacity has been secured through long-term agreements with international customers.

This agreement marks ADNOC’s second SPA with a German company for the Ruwais LNG project, following a 15-year, 1 mtpa deal 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's Executive Vice President of Downstream Business Management, expressed satisfaction with the partnership, noting that it reflects ADNOC’s commitment to sustainable and strategic energy collaborations. She emphasized that by supplying lower-carbon LNG, ADNOC is enhancing EnBW’s energy security and contributing to decarbonisation efforts.

This deal aligns with the UAE-Germany Energy Security and Industry Accelerator (ESIA) agreement signed in 2022, which focuses on energy security, decarbonisation, and lower-carbon fuels. It also supports the Joint Declaration of Intent for Sustainable Energy Cooperation between the UAE's Ministry of Industry and Advanced Technology and Germany's Baden-Württemberg state, signed in February 2024.

Peter Heydecker, EnBW Board Member for Sustainable Generation Infrastructure, expressed enthusiasm about the long-term LNG contract and the opportunity to expand their LNG portfolio in partnership with ADNOC.

In related news, ADNOC Gas announced in November 2024 that it plans to acquire ADNOC's 60% stake in the Ruwais LNG project, estimated at around $5 billion, by the second half of 2028. Once completed, the project will significantly increase ADNOC Gas' LNG production capacity to approximately 15 mtpa.