ADNOC’s Ruwais LNG Enters Long-Term Supply with EnBW

The Abu Dhabi National Oil Co. (ADNOC) finalized a 15-year LNG sales and purchase agreement (SPA) with Energie Baden-Württemberg AG (EnBW), supplying 0.6 mtpa sourced from the under-development Ruwais LNG project—located in Al Ruwais Industrial City, Abu Dhabi, UAE. Deliveries are expected in 2028, after the project enters commercial operation.

“We are very pleased to partner with EnBW, one of the largest energy supply companies in Germany, in our second Sales and Purchase Agreement to the country from the Ruwais LNG project,” said Fatema Al Nuaimi, ADNOC Executive Vice President, Downstream Business Management. “This partnership underscores ADNOC’s dedication to fostering sustainable and strategic energy collaborations. By supplying lower-carbon LNG to EnBW, we are not only enhancing our partner’s energy security but also contributing to decarbonization efforts, reaffirming ADNOC’s position as a trusted partner in the evolving energy landscape.”

UAE-Germany

The agreement with EnBW—a large-scale operator of European energy infrastructure—is ADNOC’s second SPA with a German company offtaking from Ruwais LNG. It follows a 15-year, 1 mtpa SPA with SEFE Marketing and Trading Singapore. Ruwais LNG has a 9.6 mtpa LNG production capacity, with over 8 mtpa already committed to global customers via long-term agreements.

SPA signed between ADNOC and EnBW; image credit: ADNOC

“We are very pleased to establish a long-term LNG contract with ADNOC,” said Peter Heydecker, EnBW Board Member for Sustainable Generation Infrastructure. “Finalizing this contract is a significant step in furthering our relationship and expanding our LNG portfolio. We will continue to work with our esteemed partner ADNOC to develop other opportunities in LNG and adjacent businesses and look forward to a mutually beneficial long-term relationship and joint business success.”

It also builds on the UAE-Germany Energy Security and Industry Accelerator agreement, signed by the UAE and Germany in 2022, which aims to accelerate cooperation in energy security, decarbonization, and lower-carbon fuels. ADNOC Gas expects to acquire ADNOC’s 60% stake in the Ruwais LNG project at cost, estimated at around $5 billion, in the second half of 2028. Upon completion, the project, comprising two 4.8 mtpa liquefaction trains with a combined capacity of 9.6 mtpa, will more than double ADNOC Gas’ existing operated LNG production capacity to around 15 mtpa.

Ta’ziz Chemicals Hub

In November, the Ta’ziz chemicals hub obtained engineering, procurement, and construction (EPC) contracts for the development of site infrastructure. Valued at more than $2 billion, the contracts will advance the hub’s chemicals and transition fuels ecosystem in Al Ruwais Industrial City, Abu Dhabi. The infrastructure build-out will also enable ADNOC to develop a local low-carbon chemicals supply chain, including ammonia, and support its global growth strategy to become a leading chemicals company.

The contracts include the construction of:

• Storage facilities
• Tank-to-jetty pipelines
• Jetty-to-tank pipelines
• Inter-site pipelines
• Liquid product storage

The contract for chemicals terminal work was awarded to Rotary Engineering-Abu Dhabi, in partnership with Advario. NDMC Group will handle the chemicals port, and, upon completion, it will facilitate the export of chemicals and transition fuels, connecting regional and global markets and allowing access to imported supplies. The essential infrastructure development contract was given to Al Geemi Contracting, building internal roads, security fencing, and buildings on the 17 sq. km Ta’ziz site. An additional contract will include the development of centralized utilities such as power transmission, steam, and cooling water.