ADNOC has signed a 15-year Heads of Agreements (HoA) with German EnBW Energie Baden-Württemberg AG (EnBW), for the delivery of 0.6 million metric tons per year (mmtpa) of liquefied natural gas (LNG) starting in 2028 and primarily be sourced from Ruwais LNG plant, which is currently under development in Al Ruwais Industrial City.
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 minimize 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, said ADNOC in a press release on Wednesday.
Upon reaching a final investment decision, 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.
“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,” said Fatema Al Nuaimi, ADNOC Executive Vice President, Downstream Business Management.
The UAE-Germany Energy Security and Industry Accelerator (ESIA), signed in 2022, aims to advance cooperation in energy security, decarbonization and lower-carbon fuels.
For his part, 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.”