ADNOC Inks Third Long-Term Heads of Agreement for Ruwais LNG Project

ADNOC revealed on May 8, 2024, the completion of a 15-year Heads of Agreement (LNG agreement) with EnBW Energie Baden-Württemberg AG (EnBW), a leading energy company in Germany. The agreement entails the delivery of 0.6 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG).

The LNG will mainly originate from ADNOC's lower-carbon Ruwais LNG initiative, presently in progress in Al Ruwais Industrial City, Abu Dhabi. Positioned to become the first LNG export site in the Middle East and Africa to operate on clean energy, the Ruwais LNG facility will harness cutting-edge technologies and artificial intelligence (AI) methodologies to reduce emissions and enhance operational efficiency.

This marks the third long-term LNG supply contract originating from the project. Deliveries are anticipated to commence in 2028, coinciding with the start of commercial operations.

Fatema Al Nuaimi, ADNOC's Executive Vice President of Downstream Business Management, expressed: “The Ruwais LNG project is steadily advancing, solidifying ADNOC's standing as a dependable international natural gas supplier. This latest agreement aligns with the UAE-Germany Energy Security and Industry Accelerator, aiding Germany in its efforts to broaden its energy mix and bolster energy security.”

The UAE-Germany Energy Security and Industry Accelerator (ESIA), initiated in 2022, aims to foster cooperation in energy security, decarbonization, and the uptake of lower-carbon fuels.

Peter Heydecker, EnBW’s Board Member overseeing Sustainable Generation Infrastructure, expressed enthusiasm about EnBW's inaugural LNG contract in the Middle East with ADNOC, a trusted partner. This marks a significant stride in diversifying their procurement portfolio and establishing their own LNG value chain. Additionally, the experience garnered from this collaboration will be instrumental in pursuing their medium-term objective of setting up an import structure for green gases, given the similarity between the two business domains.

The LNG agreement is subject to several conditions, including a final investment decision (FID) on the project, regulatory approvals, and the negotiation of a definitive Sale and Purchase Agreement between the two companies. Once finalized, the project will comprise two LNG liquefaction trains, each with a capacity of 4.8 mmtpa, totaling 9.6 mmtpa. This development will significantly increase ADNOC’s LNG production capacity to approximately 15 mmtpa, more than doubling its current capacity.

Established in 1971, ADNOC stands as a prominent diversified energy group, fully owned by the Abu Dhabi Government. Operating across the entire energy value chain, ADNOC's integrated businesses strive to meet the evolving demands of the energy market responsibly. Already positioned among the leading oil and gas producers worldwide with the lowest carbon intensity, ADNOC is actively pursuing measures to enhance the cleanliness of today's energy sources while investing in cleaner energy alternatives for the future. The company is committing an initial $23 billion to drive the advancement and acceleration of lower-carbon solutions, including investments in new energy sources and decarbonization technologies. These initiatives align with ADNOC's ambition to achieve net zero emissions by 2045 and its commitment to eliminating methane emissions entirely by 2030.