Abu Dhabi National Oil Company (ADNOC) has signed a third Sales and Purchase Agreement for the Ruwais liquefied natural gas project. The company agreed on a new 15-year deal with EnBW Energie Baden-Württemberg AG, one of Europe’s biggest energy infrastructure companies. The deal will see ADNOC supply 0.6 million tons of LNG annually. This agreement builds on previous Heads of Agreement between the two companies.
Under the SPA, ADNOC will supply EnBW with LNG from the Ruwais project currently under development in Abu Dhabi. The first supplies will start in 2028 when the project begins commercial operations. This agreement is an important component of ADNOC’s LNG strategy, which aims to satisfy increasing global demand for cleaner energy.
This deal will allow ADNOC to secure over 8 mtpa of the Ruwais LNG project’s 9.6 mtpa capacity through long-term agreements.
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A Strategic Step for Both Parties
Peter Heydecker, EnBW’s member of the board for sustainable generation infrastructure, said, “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.”
He added, “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.”
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The deal is part of a comprehensive framework for deepening energy cooperation between the UAE and Germany. It’s a building block for the 2022 UAE-Germany Energy Security and Industry Accelerator, focused on energy security, decarbonization, and low-carbon fuels. The deal also builds on the UAE-Germany Joint Declaration of Intent for Sustainable Energy Cooperation signed with Baden-Württemberg earlier in the year.
EnBW aims to explore business opportunities with ADNOC, especially in LNG and related energy markets, for mutual benefit.
In November 2024, ADNOC Gas agreed to acquire the company’s 60% equity stake in the Ruwais LNG project for a reported $5 billion. Completion is expected to occur in the second half of 2028, boosting ADNOC Gas’ shares in the LNG market. Completed, the Ruwais project will include two new liquefaction trains, bump ADNOC Gas’ LNG capacity up to 15 mtpa.
