November 6

UAE’s Adnoc, Germany’s SEFE finalize Ruwais LNG supply deal

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According to Adnoc, the SPA converts the previous heads of agreement between Adnoc and SEFE announced in March into a definitive agreement.

Under the 15-year deal, Adnoc will supply 1 million tonnes per annum of LNG to SEFE Marketing and Trading Singapore, a subsidiary of SEFE.

Also, the LNG supplies will primarily be sourced from the Ruwais LNG project, with deliveries expected to start in 2028 upon the start of its commercial operations.

“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,” Fatema Al Nuaimi, executive VP, downstream business management at Adnoc, said.

Egbert Laege, CEO 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.”

This is the first definitive agreement for the supply of LNG from the 9.6 mtpa Ruwais LNG project.

To date, over 7 mtpa of the LNG project’s production capacity has been committed to international customers through long-term agreements, Adnoc said.

State-owned Adnoc recently signed a heads of agreement with Indian Oil and it signed a deal with Japan’s Osaka Gas.

Adnoc announced in June the final investment decision on the Ruwais project and the EPC award to a joint venture led by France’s Technip Energies.

Prior to that, Adnoc issued in March this year a limited notice to proceed for early engineering, procurement, and construction activities to the joint venture.

Besides this EPC deal, Adnoc Gas also awarded US energy services firm Baker Hughes a contract for the LNG export terminal.

Baker Hughes will provide two electric liquefaction systems (e-LNG) for the Ruwais LNG project.

Moreover, BP, Mitsui & Co., Shell, and TotalEnergies agreed to buy a 10 percent equity stake in Adnoc’s LNG export terminal.

Adnoc will retain a 60 percent majority stake.

The LNG project will more than double Adnoc’s existing UAE LNG production capacity to around 15 mtpa, as the company builds its international LNG portfolio.

Adnoc currently owns a 70 percent stake in Adnoc LNG, which currently produces about 6 mtpa of LNG from its facilities on Das Island.

 

The post UAE’s Adnoc, Germany’s SEFE finalize Ruwais LNG supply deal appeared first on Energy News Beat.

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