Abu Dhabi National Oil Company (ADNOC) announced today the signing of a 15-year liquefied natural gas (LNG) agreement with SEFE Marketing & Trading Singapore, a subsidiary of German SEFE Securing Energy for Europe. The agreement entails the delivery of one million metric tonnes per annum (mmtpa) of LNG.
The LNG will mainly come from ADNOC’s lower-carbon Ruwais LNG project which is currently under development in Al Ruwais Industrial City, Abu Dhabi. The Ruwais LNG plant’s design allows it to run on clean power. Moreover, it will leverage the latest technologies, including artificial intelligence to enhance efficiency.
Second major supply agreement
This significant agreement marks the second long-term LNG supply deal stemming from ADNOC’s Ruwais LNG project. It underscores ADNOC’s strategic focus on expanding its LNG capabilities and meeting the growing global demand for natural gas. In December 2023, ADNOC signed a similar agreement with China’s ENN Natural Gas. Scheduled to commence deliveries in 2028, the agreement date coincides with the project’s commercial operations.
Fatema Al Nuaimi, executive vice president, Downstream Business Management at ADNOC, said: “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.” Al Nuaimi added that the agreement with SEFE Marketing & Trading Singapore is the first with a European company from the Ruwais lower-carbon LNG project. Hence, it underscores ADNOC’s global position as a reliable and responsible global energy provider.
Advancing low-carbon initiatives
ADNOC’s agreement with SEFE Marketing & Trading Singapore supports the Energy Security and Industry Accelerator (ESIA) agreement that the UAE and Germany signed in 2022. Moreover, it further strengthens both nations’ bilateral cooperation in energy security, decarbonization and climate action. Furthermore, it builds upon ADNOC’s achievement of delivering the first LNG cargo from the Middle East to Germany in 2023.
Frédéric Barnaud, CEO of SEFE Marketing & Trading and chief commercial officer of SEFE, said, “SEFE and ADNOC have a long and productive partnership, spanning over 15 years.” He also highlighted that this agreement will be one of the lowest carbon intensity LNG projects in the world. “We aim to further build on our existing relationship and explore joint low-carbon energy developments,” Barnaud added.
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Pioneering LNG production
LNG plays a pivotal role as a transitional fuel since it generates lower carbon emissions compared to other fossil fuels. With sustainability as a priority, the Ruwais LNG project is set to be the first LNG export facility in the region to run on clean energy.
Upon completion, the project will double ADNOC’s LNG production capacity to around 15mmtpa. It consists of two 4.8mmtpa LNG liquefaction trains with a total capacity of 9.6mmtpa. Besides, its design will allow it to utilize AI, digitalization, and the latest technologies to improve efficiency and safety across the new facility.
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