In a significant move to bolster its position in the global energy market, Abu Dhabi National Oil Company (ADNOC) has announced the signing of a second long-term liquefied natural gas (LNG) agreement for its pioneering Ruwais LNG project. This latest development follows the commencement of early engineering, procurement, and construction (EPC) activities, marking a new phase in the project's advancement.

On March 18, ADNOC solidified a 15-year heads of agreement (HOA) with SEFE Marketing & Trading Singapore, an arm of Germany's energy major, SEFE Securing Energy for Europe. This partnership aims to deliver 1 million metric tonnes per annum (mmtpa) of LNG, primarily sourced from the innovative Ruwais LNG project situated in Al Ruwais Industrial City, Abu Dhabi.

This deal represents the second long-term LNG supply agreement ADNOC has secured for the Ruwais project, following a similar 15-year arrangement with China’s ENN Natural Gas in December 2023. LNG deliveries under the new agreement are slated to begin in 2028, aligning with the projected start of the facility's commercial operations.

ADNOC’s ongoing collaborations underline its commitment to supporting global energy security and sustainability efforts. The new agreement with SEFE Marketing & Trading notably echoes the principles of the Energy Security and Industry Accelerator (ESIA) agreement signed between the UAE and Germany in 2022, aiming to foster cooperation in energy security, decarbonization, and climate action.

Frédéric Barnaud, CEO of SEFE Marketing & Trading, expressed enthusiasm about embarking on a new chapter with ADNOC, highlighting the Ruwais LNG project's potential to be one of the world's least carbon-intensive LNG initiatives. This ambition aligns with both companies' goals to pursue low-carbon energy developments.

Fatema Al Nuaimi, ADNOC’s Executive Vice President of Downstream Business Management, remarked on the significance of this agreement, noting its role in cementing ADNOC’s status as a dependable energy supplier. The partnership is particularly timely given Germany's ongoing efforts to diversify its energy mix and enhance energy security.

The Ruwais LNG project is set to become the first LNG export facility in the Middle East and North Africa (MENA) region powered by clean energy, reflecting a significant leap towards minimizing carbon emissions in LNG production. Upon completion, the facility, which comprises two 4.8 mmtpa LNG liquefaction trains, will significantly increase ADNOC’s LNG production capacity to approximately 15 mmtpa.

The project's design incorporates state-of-the-art technology, including AI and digitalization, to optimize operations and reduce its environmental footprint. ADNOC has recently taken a critical step forward by issuing a limited notice to proceed for early EPC activities to a joint venture that includes Technip Energies, JGC Corporation, and National Petroleum Construction Company, with the final investment decision (FID) anticipated later this year.

As ADNOC propels forward with its Net Zero by 2045 ambition, the Ruwais LNG project emerges as a cornerstone in the company's strategy to meet the growing global demand for sustainable energy solutions.

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