Khaleej Times, Thu, May 09, 2024 | Dhu al-Qadah 1, 1445
Adnoc signs third long-term agreement for Ruwais LNG project
Emirates:
Adnoc announced on Wednesday the signing of a 15-year heads of agreement (LNG
agreement) with EnBW Energie Baden-Württemberg AG (EnBW), one of the largest
energy companies in Germany, for the delivery of 0.6 million metric tonnes per
annum (mmtpa) of liquefied natural gas (LNG).
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 is set to be the first LNG export facility in the Middle
East and Africa region to run on clean power and will leverage the latest
technologies and artificial intelligence (AI) tools to minimise emissions and
drive efficiency.
This agreement marks the third long-term LNG supply agreement from the project.
The deliveries are expected to start in 2028, upon commencement of commercial
operations.
Fatema Al Nuaimi, Adnoc executive vice president of downstream business
management, said: “The Ruwais LNG project continues to gain momentum,
reinforcing Adnoc’s position as a reliable global natural gas provider. This new
agreement builds on the UAE-Germany Energy Security and Industry Accelerator and
will support Germany as it strives to diversify its energy sources and enhance
its energy security.”
The UAE-Germany Energy Security and Industry Accelerator (ESIA), signed in 2022,
aims to advance cooperation in energy security, decarbonisation and lower-carbon
fuels.
Peter Heydecker, EnBW’s board member for sustainable generation infrastructure,
said, “We are delighted that EnBW has signed its first LNG contract in the
Middle East with our experienced partner Adnoc. In doing so, we are taking the
next step in terms of diversifying our procurement portfolio and establishing
our own LNG value chain. We can also use the experience gained here for our
medium-term goal of establishing an import structure for green gases, since the
two business fields are very similar.”
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.
When completed, the project, which consists of two 4.8 mmtpa LNG liquefaction
trains with a total capacity of 9.6 mmtpa, will more than double Adnoc’s LNG
production capacity to around 15mmtpa.