Adnoc announced on Monday it has signed a third Sales and Purchase Agreement (SPA) for the lower-carbon Ruwais liquefied natural gas (LNG) project, with Germany’s EnBW Energie Baden-Württemberg AG (EnBW), one of the largest operators of energy infrastructure in Germany and across Europe.

The 15-year Sales and Purchase Agreement for supplying 0.6 million tonnes per annum (mtpa) of LNG converts a previous Heads of Agreement between Adnoc and EnBW into a definitive agreement.

The LNG will primarily be sourced from the Ruwais LNG project, which is currently under development in Al Ruwais Industrial City, Abu Dhabi.

Deliveries are expected to start in 2028 upon commencement of its commercial operations. To date, over 8 mtpa of the project’s 9.6 mtpa production capacity has been committed to international customers through long-term agreements.

The agreement with EnBW is Adnoc’s second SPA with a German company for Ruwais LNG, following a 15-year, 1 mtpa agreement signed in November with SEFE Marketing and Trading Singapore Pte, a subsidiary of Germany’s SEFE Securing Energy for Europe GmbH.

Fatema Al Nuaimi, Adnoc Executive Vice President of Downstream Business Management, said, "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.

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 decarbonisation efforts, reaffirming Adnoc’s position as a trusted partner in the evolving energy landscape.”

The agreement builds on the UAE-Germany Energy Security and Industry Accelerator (ESIA) agreement, signed by the UAE and Germany in 2022, which aims to advance cooperation in energy security, decarbonisation and lower-carbon fuels.

The agreement also further advances the Joint Declaration of Intent for Sustainable Energy Cooperation between the Ministry of Industry and Advanced Technology of the UAE and the German state of Baden-Württemberg signed in February 2024.

Peter Heydecker, EnBW Board Member for Sustainable Generation Infrastructure, said, "We are very pleased to establish a long-term LNG contract with Adnoc. Finalising 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.”

Adnoc Gas announced in November 2024 that it expects to acquire Adnoc’s 60 per cent 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.

Meanwhile Adnoc has signed a Strategic Collaboration Agreement (SCA) with the Ministry of Industry and Advanced Technology (MoIAT), Abu Dhabi Department of Economic Development (ADDED), Abu Dhabi Investment Office (ADIO), and Abu Dhabi Chamber of Commerce and Industry (ADDCI), aimed at boosting local manufacturing capabilities.

The SCA, which was signed at Abu Dhabi Business Week, builds on Adnoc’s successful In-Country Value (ICV) programme which is driving industrial growth and diversification while strengthening the UAE’s manufacturing capacity.

It is designed to strengthen the UAE’s industrial ecosystem and explore opportunities to support local manufacturers by leveraging key incentives, ensuring alignment with national strategic objectives, and fostering compliance with UAE regulations.

A core focus of the agreement is empowering small and medium-sized enterprises (SMEs) by integrating them into Adnoc’s supply chain, fostering innovation, enhancing competitiveness, and contributing to the UAE’s broader economic diversification goals.

The signing of the agreement was witnessed by Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Adnoc Managing Director and GCEO, and Ahmed Jasim Al Zaabi, Chairman of ADDED and ADDCI.

The signatories were Omar Suwaina Al Suwaidi, Under-Secretary, MoIAT, Badr Al-Olama, Director-General of ADIO, Shamis Ali Al Dhaheri, the Second Vice Chairman of ADDCI and Yaser Saeed Almazrouei, Adnoc Executive Director, People, Commercial and Corporate Support Omar Al Suwaidi said, “This collaboration embodies the UAE’s commitment to sustainable economic development.

The programme is in line with the National Strategy for Industry and Advanced Technology, Operation 300bn, to make supply chains more sustainable and achieve self-sufficiency in critical areas.