ADNOC has signed a 15-year Sales and Purchase Agreement (SPA) with Germany’s EnBW Energie Baden-Württemberg AG for the lower-carbon Ruwais Liquefied Natural Gas (LNG) project.
The landmark SPA for supplying 0.6 million tons 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. Located in Al Ruwais Industrial City, Abu Dhabi, the project is currently in development. Deliveries are anticipated to begin in 2028. More than 8 mtpa of the project’s 9.6 mtpa production capacity has been committed to international customers through long-term agreements.
This agreement marks 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 SEFE Securing Energy for Europe GmbH.
Fatema Al Nuaimi Executive VP Downstream Business Management – ADNOC
“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 SPA marks a key step in UAE-Germany corporation, building on the Energy Security and Industry Accelerator (ESIA) agreement signed back in 2022, to enhance energy security, decarbonization and lower-carbon fuels.
Furthermore, the agreement 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, added that, “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.”
Last month, ADNOC Gas revealed that it expects to acquire ADNOC’s 60 percent stake in the Ruwais LNG project at cost, estimated at around $5 billion, in the second half of 2028. With a total capacity of 9.6 mtpa, the project will boost ADNOC Gas’ LNG production, increasing it to around 15 mtpa upon completion.
