Adnoc Signs 15-Year Deal with Germany’s EnBW to Strengthen Energy Security and Decarbonisation

Abu Dhabi National Oil Company (Adnoc) has finalized a third Sales and Purchase Agreement (SPA) for its lower-carbon Ruwais liquefied natural gas (LNG) project, partnering with Germany’s EnBW Energie Baden-Württemberg AG (EnBW), a leading energy infrastructure operator in Europe.

Under the 15-year agreement, Adnoc will supply 0.6 million tonnes per annum (mtpa) of LNG to EnBW, converting a previous Heads of Agreement into a definitive contract. The LNG will be sourced from the Ruwais LNG project, which is under development in Al Ruwais Industrial City, Abu Dhabi. Deliveries are set to begin in 2028 when the project commences commercial operations.

To date, more than 8 mtpa of the Ruwais project’s total production capacity of 9.6 mtpa has been secured through long-term international agreements.

This marks Adnoc’s second SPA with a German entity for the Ruwais LNG project. In November 2024, Adnoc signed a 15-year agreement to supply 1 mtpa of LNG to SEFE Marketing and Trading Singapore, a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH.

Fatema Al Nuaimi, Adnoc Executive Vice President, Downstream Business Management, stated:
“We are pleased to partner with EnBW, one of Germany’s largest energy suppliers, in our second SPA for the country from the Ruwais LNG project. This partnership highlights Adnoc’s commitment to fostering sustainable energy collaborations. By supplying lower-carbon LNG to EnBW, we enhance energy security and support decarbonisation, solidifying Adnoc’s role as a trusted energy partner.”

The agreement aligns with the UAE-Germany Energy Security and Industry Accelerator (ESIA) pact signed in 2022, which focuses on energy security, decarbonisation, and lower-carbon fuels. It also advances the Joint Declaration of Intent for Sustainable Energy Cooperation between the UAE’s Ministry of Industry and Advanced Technology and the German state of Baden-Württemberg, signed in February 2024.

Peter Heydecker, EnBW Board Member for Sustainable Generation Infrastructure, remarked:
“Finalising this long-term LNG contract with Adnoc is a significant milestone for expanding our LNG portfolio and strengthening our partnership. We look forward to exploring additional opportunities in LNG and adjacent businesses with Adnoc.”

In November 2024, Adnoc Gas announced plans to acquire Adnoc’s 60% stake in the Ruwais LNG project, valued at approximately $5 billion, by 2028. Upon completion, the project will include two liquefaction trains with a combined capacity of 9.6 mtpa, more than doubling Adnoc Gas’ existing LNG production to approximately 15 mtpa.