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Adnoc Signs Second Long-Term Heads of Agreement for Ruwais LNG Project

Adnoc Signs Second Long-Term Heads of Agreement for Ruwais LNG Project

Abu Dhabi National Oil Company (Adnoc) announced a significant milestone on Monday as it sealed 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 GmbH. The agreement entails the delivery of 1 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG) and marks a crucial step forward for the lower-carbon Ruwais LNG project.

Key Details of the Agreement

Under the terms of the agreement, Adnoc will supply LNG primarily sourced from its lower-carbon Ruwais LNG project, currently in development in Al Ruwais Industrial City, Abu Dhabi. The Ruwais LNG plant is designed to operate on clean power and will leverage cutting-edge technologies and Artificial Intelligence (AI) tools to enhance efficiency.

This agreement represents the second long-term LNG supply deal stemming from the Ruwais LNG project, following a similar 15-year agreement inked with China’s ENN Natural Gas in December 2023. Deliveries under the new agreement are slated to commence in 2028, coinciding with the commercial operations launch of the facility.

Insights from Adnoc and SEFE

Fatema Al Nuaimi, Executive Vice President of Downstream Business Management at Adnoc, emphasized the significance of the partnership, highlighting Adnoc’s commitment to serving as a reliable global energy provider. Al Nuaimi also underscored the importance of supporting Germany’s efforts to diversify its energy sources and bolster energy security through this collaboration.

Frédéric Barnaud, CEO of SEFE Marketing & Trading and CCO of SEFE, expressed optimism about the agreement, citing the longstanding partnership between SEFE and Adnoc. He emphasized the potential of the Ruwais LNG project to pave the way for low-carbon energy solutions and affirmed SEFE’s commitment to exploring further collaborative ventures with Adnoc.

Significance of the Ruwais LNG Project

The Ruwais LNG project holds strategic importance as the first LNG export facility in the Middle East and North Africa region to be powered by clean energy. It is set to play a pivotal role in meeting the rising global demand for natural gas while contributing to emissions reduction efforts. Leveraging AI, digitalization, and advanced technology, the project aims to enhance operational efficiency and safety standards across the facility.

Next Steps and Contingencies

The finalization of the LNG agreement is contingent upon a final investment decision (FID) on the project, including regulatory approvals, and the negotiation of a definitive Sale and Purchase Agreement between Adnoc and SEFE. Once these prerequisites are met, both parties are poised to embark on a transformative journey towards sustainable energy production and global energy security.

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