ADNOC signs 15-year LNG HoA with Germany's SEFE

The Abu Dhabi National Oil Company (ADNOC) has signed a 15-year heads of agreement with SEFE Marketing & Trading Singapore, a subsidiary of Germany’s SEFE, for the delivery of 1mn tonnes/year of LNG, it announced on March 18. 

The LNG will primarily be sourced from ADNOC’s Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi. This agreement follows a similar 15-year LNG supply deal with China’s ENN signed in December last year. 

Deliveries under the agreement are expected to commence in 2028, coinciding with the start of commercial operations at the Ruwais LNG project.

“Gas accounts for almost a quarter of Germany’s primary energy use, and we look forward to supporting its efforts to diversify its energy sources and enhance its energy security," Fatema Al Nuaimi, executive vice president of downstream business management at ADNOC, said. 

This agreement further solidifies ADNOC's position as a key LNG supplier to global markets, building upon the company's successful delivery of the first LNG cargo from the Middle East to Germany in 2023.

“This LNG supply agreement for the Ruwais LNG project, set to be one of the lowest-carbon intensity LNG projects in the world, marks the start of a new chapter. We aim to further build on our existing relationship and explore joint low-carbon energy developments," said Frederic Barnaud, CEO of SEFE Marketing & Trading. 

Upon completion, the project will feature two LNG liquefaction trains with a capacity of 4.8mn tonnes/year each, totalling 9.6mn tonnes/year. This expansion is expected to more than double ADNOC's LNG production capacity, increasing it from 6mn tonnes/year to approximately 15mn tonnes/year.

Earlier this month, ADNOC announced the issuance of a Limited Notice to Proceed (LNTP) for early engineering, procurement, and construction (EPC) activities to a consortium led by France's Technip Energies for the Ruwais LNG project.