Abu Dhabi Seals Long-Term Gas Deal with Germany

The Abu Dhabi National Oil Company (ADNOC) announced a significant agreement on Monday to supply liquefied natural gas (LNG) to Germany for the next 15 years. The deal, signed with SEFE Marketing & Trading, a subsidiary of the German firm Securing Energy for Europe (SEFE), will see ADNOC deliver one million metric tons of LNG annually.

This agreement marks a continuation of the growing energy partnership between the United Arab Emirates (UAE) and Germany. Notably, in 2023, ADNOC delivered the first LNG shipment ever from the UAE to Germany. The new deal further strengthens this connection, providing Germany with a reliable source of natural gas while solidifying ADNOC's position as a key LNG supplier on the global market.

The LNG deliveries are expected to commence in 2028, coinciding with the launch of ADNOC's highly anticipated Ruwais LNG project. This project is particularly noteworthy as it is designed to be one of the lowest-carbon intensity LNG facilities in the world. The plant will utilize clean power and incorporate cutting-edge technologies to minimize its environmental footprint.

This aspect of the deal aligns with Germany's ambitious clean energy goals. While the country aims to generate 80% of its electricity from renewable sources by 2030, it currently relies heavily on fossil fuels for domestic power production. Natural gas, considered a cleaner burning option compared to other fossil fuels, plays a crucial role in this transitional phase.

The agreement between ADNOC and SEFE is mutually beneficial. It ensures a stable supply of LNG for Germany while providing ADNOC with a long-term customer for its upcoming Ruwais LNG project. The deal also paves the way for potential future collaborations in the area of low-carbon energy development, as highlighted by Frederic Barnaud, CEO of SEFE Marketing & Trading.

"This LNG supply agreement for the Ruwais LNG project, set to be one of the lowest-carbon intensity LNG projects in the world, marks the start of a new chapter," Barnaud said. "We aim to further build on our existing relationship and explore joint low-carbon energy developments."

ADNOC's deal with SEFE comes on the heels of a similar 15-year LNG supply agreement signed with China's ENN Natural Gas in December 2023. These agreements solidify ADNOC's position as a major player in the global LNG market and demonstrate the growing importance of natural gas as a transitional fuel in supporting energy security and clean energy ambitions.

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