In the last month of 2024, ADNOC converted more initial LNG sales agreements (HOAs) into the binding LNG sales and purchase agreements (SPAs), and it is expected to do so for the remaining HOAs in the New Year.
The sold LNG will primarily be sourced from the UAE-based operator’s Ruwais LNG project, which is currently under construction with its start-up expected in 2028.

 

According to the Global LNG Contracts Database, since November when ADNOC signed its first firmed sales agreement to supply 1 MMT/Y of LNG to Germany’s SEFE for 15 years starting 2028, it has announced two other similar agreements for the Ruwais LNG with Petronas (1 MMT/Y), and EnBW (0.6 MMT/Y), converted the signed HOAs with them into definitive agreements.

 

According to the Global LNG Database®, the Ruwais LNG project in Al Ruwais Industrial City, Abu Dhabi, is set to become one of the lowest-carbon intensity LNG plants in the world as it will use electric-driven motors instead of conventional gas turbines.
ADNOC has taken a positive final investment decision (FID) on its 9.6 MMT/Y Ruwais LNG project in June 2024 and awarded the project's engineering, procurement and construction (EPC) contract to a Technip Energies-led JV with JGC and UAE’s National Petroleum Construction Company (NPCC).
The project’s FEED work was performed by McDermott International, Ltd.

 

“Natural gas plays a critical role in meeting the world’s energy needs”, Fatema Al Nuaimi, EVP of ADNOC said, adding that signing of the LNG sales agreements “underscores ADNOC’s role as a reliable global energy supplier and supports growing demand in Asia for cleaner, more sustainable energy solutions.”
Al Nuaimi has recently been nominated as the next CEO of ADNOC Gas.

 

The Ruwais LNG project would be the first LNG export facility in the Middle East and Africa region to run on nuclear power. The facility would also utilize AI “to enhance safety, minimize emissions, and drive efficiency.”

 

By using nuclear energy for running its Ruwais project, ADNOC will achieve two goals with one action: reducing the project’s capex and addressing environmental concerns, Mostafa Sharif, Gas Market Senior Advisor said, adding that “ADNOC has also selected a wise strategy for marketing Ruwais project’s LNG”, offering a moderate term contracts (i.e. 15-year) which is in the middle of two extremes: 25-year contracts offered by Qataris and 10-year contracts offered by Woodside. “This strategy has satisfied the clients’ expectations for more flexibility in the current market situation and also mitigated the project’s financial risks.”

 

Perfect information about the world’s LNG import/export projects such as “Ruwais LNG project” is available on the Global LNG Database®. Learn more at: here

 

 

Follow Global LNG Info

Follow @GlngInfo