ADNOC signs 15-year LNG supply deal with Germany’s SEFE

ADNOC and German midstream energy company SEFE Securing Energy for Europe have signed a 15-year heads of agreement for the supply of 1 million tpy of LNG, the companies announced on Monday.

Under the agreement, ADNOC will supply SEFE with LNG that will primarily be sourced from its Ruwais LNG facility, currently under development in Ruwais Industrial City, Abu Dhabi. Deliveries are expected to start in 2028 with the commencement of the facility’s commercial operations.

The deal is contingent upon the FID on the project and the negotiation of a final sale and purchase agreement between the parties.

“We are delighted to be the first European company to secure LNG volumes from ADNOC’s low-carbon Ruwais LNG project and look forward to this deal being the foundation for more enhanced collaboration in LNG and low-carbon alternatives,” said Egbert Laege, CEO of SEFE.

This is the second long-term LNG supply agreement from the Ruwais LNG project, following a 15-year agreement with China’s ENN Natural Gas signed in December 2023.

According to German federal agency Bundesnetzagentur, the total volume of LNG imported into Germany in 2023 was 69,656 GWh, or 7% of total gas imports. The country has four LNG terminals, the first of which started operations in Wilhelmshaven in December 2022.

The Ruwais LNG complex will consist of two trains with a combined capacity of 9.6 million tonnes per year of LNG. Designed to run on clean power, it is slated to become one of the lowest-carbon intensity LNG plants in the world.