ADNOC announced on Monday the signing of a 15-year Heads of Agreement (LNG agreement) with SEFE Marketing & Trading Singapore Pte Ltd., a subsidiary of Germany’s SEFE Securing Energy for Europe, for the delivery of 1 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG).

The LNG will primarily be sourced from ADNOC’s lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City, Abu Dhabi.

The statement said the LNG agreement demonstrates UAE-German Energy Security and Industry Accelerator (ESIA) agreement, signed in 2022, in action by advancing cooperation in energy security, decarbonisation and lower-carbon fuels.

The LNG agreement with SEFE is the second such agreement from the Ruwais LNG project, following the 15-year agreement with China’s ENN Natural Gas signed in December 2023.

The deliveries are expected to start in 2028, upon commencement of the facility’s commercial operations.

The LNG project, which consists of two 4.8mmtpa LNG liquefaction trains with a total capacity of 9.6mmtpa, will more than double ADNOC’s LNG production capacity to around 15mmtpa.

Early civil works at the site have already commenced, according to the statement.

In March 2024, ADNOC issued a Limited Notice to Proceed (LNTP) to a joint venture led by Technip Energies, with JGC Corporation and National Petroleum Construction Company PJSC, for early EPC activities.

In October 2023, ADNOC awarded Baker Hughes a $400 million (AED1.47 billion) contract for the supply of essential long lead items.

The LNG agreement is contingent upon a final investment decision (FID) on the project, which is expected this year, regulatory approvals, and the negotiation of a definitive Sale and Purchase Agreement between the ADNOC and SEFE.

Read more: ADNOC issues early EPC award for Ruwais LNG Project, FID expected this year

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(Editing by Anoop Menon) (anoop.menon@lseg.com)

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