Germany and the UAE strengthen natural gas partnership with ADNOC’s third 15-year agreement for major LNG project

EnBW Energie Baden-Württemberg (EnBW), a prominent energy player in Germany, has made a significant move towards energy security and decarbonization by securing its first liquefied natural gas (LNG) deal in the Middle East. The company has signed a long-term contract with Abu Dhabi National Oil Company (ADNOC) for the delivery of 0.6 million metric tons per annum (mmtpa) of LNG from the Ruwais LNG project in Abu Dhabi.

The agreement, which spans over 15 years, is a result of the ‘UAE-Germany Energy Security and Industry Accelerator (ESIA)’ signed in 2022, aiming to enhance cooperation in energy security, decarbonization, and lower-carbon fuels between the two countries. This deal solidifies ADNOC’s position as a reliable global natural gas provider, following the successful delivery of the first LNG cargo from the Middle East to Germany in 2023.

Peter Heydecker, EnBW’s Board Member for Sustainable Generation Infrastructure, expressed his delight in signing the contract with ADNOC, emphasizing the importance of diversifying the procurement portfolio and establishing an LNG value chain. He also highlighted the potential for leveraging the experience gained from this deal to establish an import structure for green gases in the future.

The LNG for this agreement will primarily come from ADNOC’s Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi. The project is set to be powered by clean and low-carbon energy, making it one of the world’s lowest-carbon-intensity LNG facilities. The deliveries are expected to commence in 2028, coinciding with the start-up of commercial operations of the Ruwais LNG plant.

Fatema Al Nuaimi, ADNOC’s Executive Vice President of Downstream Business Management, highlighted the significance of the Ruwais LNG project in reinforcing ADNOC’s position as a global natural gas provider. She emphasized that the agreement will support Germany in diversifying its energy sources and enhancing energy security.

The Ruwais project, featuring two LNG liquefaction trains with a total capacity of 9.6 mmtpa, will significantly increase ADNOC’s LNG production capacity to around 15 mmtpa upon completion. The plant will cover its electricity needs from low-carbon sources, optimizing the carbon footprint for LNG production through the use of AI technologies to ensure high energy efficiency.

While the LNG agreement is subject to a final investment decision on the Ruwais LNG project and the negotiation of a definitive sale and purchase agreement, this milestone represents a significant step for EnBW in expanding its LNG activities and diversifying its gas sources. The project’s focus on clean and low-carbon energy aligns with the global push towards decarbonization and sustainable energy practices.