Adnoc Enters into First Long-Term Sales and Purchase Agreement for Ruwais LNG Project

Low-Carbon LNG Adnoc Enters into First Long-Term Sales and Purchase Agreement for Ruwais LNG Project

2024-11-11 Source: Press release Adnoc 2 min Reading Time

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Adnoc has entered into a 15-year, 1 million tonnes per annum sales and purchase agreement with Sefe Marketing and Trading Singapore, a subsidiary of Germany’s Sefe Securing Energy for Europe. With this, Adnoc has secured its first long-term sales and purchase agreement for the Ruwais liquefied natural gas project in Abu Dhabi.

The SPA builds on the UAE-Germany Energy Security and Industry Accelerator which aims to advance cooperation in energy security and lower-carbon fuels. (Source: Adnoc) — The SPA builds on the UAE-Germany Energy Security and Industry Accelerator which aims to advance cooperation in energy security and lower-carbon fuels.
(Source: Adnoc)

Abu Dhabi/UAE – Adnoc has recently announced the signing of the first long-term sales and purchase Agreement (SPA) for the lower-carbon Ruwais liquefied natural gas (LNG) project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi. The SPA converts the previous Heads of Agreement between Adnoc and Sefe announced in March into a definitive agreement.

The 15-year, 1 million tonnes per annum (mtpa) SPA was signed with Sefe Marketing and Trading Singapore, a subsidiary of Germany’s Sefe Securing Energy for Europe. The LNG will primarily be sourced from the Ruwais LNG project, with deliveries expected to start in 2028 upon commencement of its commercial operations.

To date, over 7 mtpa of Ruwais LNG project’s production capacity has been committed to international customers through long-term agreements. Fatema Al Nuaimi, Executive Vice President, Downstream Business Management at Adnoc, said: “Natural gas accounts for over a quarter of Germany’s energy supply and we are very pleased to support the country’s energy security through this landmark agreement with Sefe for the lower-carbon Ruwais LNG project. As natural gas demand continues to increase, Adnoc is ensuring greater access to lower-carbon gas to power homes, fuel industries and keep people connected, and we will continue to reinforce our role as a reliable global supplier of natural gas.”

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The SPA builds on the UAE-Germany Energy Security and Industry Accelerator (ESIA) signed by the UAE and Germany in 2022, which aims to advance cooperation in energy security, decarbonization and lower-carbon fuels.

Dr. Egbert Laege, Chief Executive Officer of Sefe, said: “This partnership with Adnoc supports our efforts to responsibly diversify our energy sources, enhance security of energy supply for Germany and Europe and to support our customers on their decarbonization journey. Furthermore, it is an important step for Sefe’s ambition to drive the energy transition and become a European energy major in the low-carbon economy.”

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, making it one of the lowest-carbon intensity LNG plants in the world.

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