Abu Dhabi's national oil company ADNOC has signed a new deal to supply LNG from a planned large export facility to a German firm.
ADNOC announced on Wednesday the signing of a 15-year LNG agreement with EnBW Energie Baden-Württemberg AG (EnBW), one of the largest energy companies in Germany, for the delivery of 0.6 million metric tons per annum (mmtpa) of LNG from the Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi.
Deliveries from the project are expected to begin in 2028, once commercial operations start.
"We are delighted that EnBW has signed its first LNG contract in the Middle East with our experienced partner ADNOC. In doing so, we are taking the next step in terms of diversifying our procurement portfolio and establishing our own LNG value chain," Peter Heydecker, EnBW's Board Member for Sustainable Generation Infrastructure, said.
The deal with EnBW is the third long-term LNG supply agreement from the Ruwais LNG project.
Earlier this year, Germany's state-controlled firm Securing Energy for Europe (Sefe) signed a deal with ADNOC, under which Abu Dhabi's company will supply LNG to Germany for 15 years beginning in 2028.
The definitive LNG agreement is contingent upon a final investment decision on the project, including regulatory approvals, and the negotiation of a definitive Sales and Purchase Agreement between the two companies.
The Ruwais LNG project is expected to be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, making it one of the lowest carbon intensity LNG plants in the world, says the German company Sefe, which was created in 2022 after Germany saved a former Gazprom unit it had expropriated in April with a multi-billion-euro loan.
For ADNOC, the deal was yet another export outlet for its LNG project as the UAE's giant looks to play a larger role in global LNG supply.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More
U.S. Power and NatGas Prices Plummet to Below Zero
Ukrainian Drones Hit Major Rosneft Refinery in Russia
First Niger Oil Bound for China Blocked in West Africa Border Row
Gas Prices Likely to Keep Falling Ahead of Peak Driving Season
Drone Attacks Take Khor Mor Gas Field Offline, Claims Lives