ADNOC announced a significant long-term sales and purchase agreement (SPA) at the ADIPEC energy conference.
This agreement marks the establishment of the first SPA for its upcoming Ruwais liquefied natural gas (LNG) project.
Furthermore, the project will be the first export facility in the Middle East and Africa driven by clean energy, ranking it among the lowest-carbon LNG facilities worldwide.
The initiative in Al Ruwais Industrial City, Abu Dhabi, aims to provide lower-carbon LNG.
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The SPA confirms the previous Heads of Agreement between ADNOC and SEFE in March, evolving it into a formal 15-year contract.
The contract involves a supply of 1 million tons per annum (mtpa) to SEFE Marketing and Trading Singapore Pte Ltd.
SEFE Marketing and Trading Singapore Pte Ltd. is a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH.
Consequently, deliveries will commence in 2028, aligning with the commencement of commercial operations for the Ruwais LNG project.
International buyers secured more than 7 million tons per annum of the Ruwais LNG project’s output capacity through similar long-term agreements.
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Supporting Germany’s Energy Security and Transition
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.”
She added, “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.”
This agreement aligns with the UAE-Germany Energy Security and Industry Accelerator (ESIA), a collaborative initiative launched in 2022.
The initiative aims to promote energy security, decarbonisation, and the development of lower-carbon fuels.