- Agreement to deliver one million tons of LNG annually to Germany starting in 2028.
- Adnoc’s environmentally friendly Ruwais plant will produce 9.6 million tons of LNG annually.
- The partnership with Adnoc strengthens Germany’s energy security and diversifies its supply sources.
Abu Dhabi National Oil Company (Adnoc) signed a 15-year liquefied natural gas (LNG) supply agreement with Securing Energy for Europe GmbH (SEFE). Under the deal, Adnoc will supply one million tons of LNG annually to Germany starting in 2028. SEFE’s Marketing and Trading division in Singapore signed the contract, marking a significant milestone in Germany’s energy strategy.
Germany, increasingly dependent on LNG for its energy needs, aims to diversify its supply sources. LNG now accounts for over a quarter of the country’s energy supply. Fatema Al Nuaimi, an Adnoc executive, emphasized the importance of this deal, stating, “Natural gas is a pillar of Germany’s energy security, and this agreement reflects our commitment to supporting it sustainably.”
Adnoc will supply LNG from its Ruwais project, located 250 kilometres west of Abu Dhabi. Ruwais focuses on reducing carbon emissions, positioning it as one of the more environmentally responsible LNG production sites globally. When fully operational, the plant will produce around 9.6 million tons of LNG annually. Over 7 million tons of this capacity have been secured through long-term contracts, solidifying Adnoc’s role as a critical LNG provider to Europe and other global markets.
SAFE, originally a subsidiary of Russia’s Gazprom, transitioned to German ownership in November 2022 after Russia’s invasion of Ukraine triggered a stop in gas supplies. The German government nationalised SEFE to stabilise the country’s energy supply. Egbert Laege, SEFE’s CEO, highlighted the importance of this partnership, saying, “This collaboration with Adnoc supports our efforts to diversify Germany’s energy sources responsibly and strengthens energy security across Europe.”
The Adnoc-SEFE agreement comes amid ongoing energy challenges in Europe, driven by geopolitical tensions. The deal helps Germany reduce reliance on Russian gas while strengthening energy ties with the UAE. It also reflects Germany’s proactive approach in securing dependable energy partners as Europe navigates the complexities of the energy transition.
Germany has intensified its energy diversification efforts following disruptions from the Ukraine conflict. Adnoc’s Ruwais project, focusing on low-carbon production, aligns with Europe’s growing emphasis on sustainability. By partnering with Adnoc, Germany strengthens its energy security and reduces the risks of future supply interruptions.
This agreement also highlights Germany’s push to deepen energy cooperation with the Middle East. Similar partnerships with other countries in the region may emerge as Europe moves away from Russian gas. This deal enhances energy supply and signals a broader, long-term collaboration between Europe and the UAE to address energy security and the transition to cleaner sources.
Through this partnership, Adnoc and SEFE pave the way for further cooperation between Europe and the Middle East. Germany’s move ensures long-term energy stability while addressing environmental concerns and supply security challenges.