ADNOC pens LNG supply HoA with Germany's EnBW

The Abu Dhabi National Oil Company (ADNOC) announced on May 8 the signing of a 15-year heads of agreement with German energy company EnBW for the delivery of 0.6mn tonnes/year of LNG, primarily sourced from its proposed Ruwais LNG project.

Under the terms of the initial agreement, deliveries are expected to commence in 2028, coinciding with the commercial operations of the Ruwais LNG project. This is EnBW's first LNG deal in the Middle East. This agreement represents the third long-term LNG supply contract secured for the project, following previous agreements with China's ENN and Germany's SEFE.

The successful execution of this agreement is contingent upon a final investment decision (FID) on the Ruwais LNG project, regulatory approvals, and the negotiation of a definitive sale and purchase agreement between ADNOC and EnBW.

Upon completion, the Ruwais LNG project will feature two LNG liquefaction trains with a capacity of 4.8mn tonnes/year each, totalling 9.6mn tonnes/year. This expansion is expected to more than double ADNOC's LNG production capacity, increasing it from 6mn tonnes/year to approximately 15mn tonnes/year.

Earlier this year, ADNOC announced the issuance of a Limited Notice to Proceed (LNTP) for early engineering, procurement, and construction (EPC) activities to a consortium led by France's Technip Energies for the Ruwais LNG project.