ADNOC Gas to Supply Natural Gas to Germany

The European Union’s (EU) plans to reduce its dependence and phase-out Russian gas imports by 2027 has moved a step closer after Abu Dhabi National Company (ADNOC) Gas signed a three-year liquefied natural gas (LNG) supply agreement with Germany’s SEFE (Securing Energy for Europe), for the delivery of 0.7 million tonnes of LNG with deliveries commencing this year.

The EU’s decision comes after Russian invasion of Ukraine in early 2022 and the US-led Western nations announced economic sanctions against Moscow for the same.

The agreement, valued at approximately $400 million over its three-year term, highlights ADNOC Gas’ continued expansion into global markets, with LNG supplied from Das Island liquefaction facility owned by ADNOC Gas, a key asset in the company’s portfolio.

With a production capacity of six Million Tonnes Per Annum (MTPA), Das Island’s LNG plant has shipped over 3,500 LNG cargoes worldwide since starting operations in 1977, strengthening ADNOC Gas’ long-term relationships with key global energy partners.

ADNOC Gas is a key player in ADNOC’s strategy to enhance its natural gas production capacity and expand global LNG exports. As a crucial transitional fuel, natural gas offers lower carbon emissions compared to other fossil fuels and serves as an important raw material in industrial value chains.

SEFE is committed to ensuring energy security across Germany and Europe by expanding its international portfolio and strengthening its global partnerships. As part of this commitment, SEFE collaborates with leading LNG and natural gas producers around the world to ensure diversified and reliable energy sources for Germany and beyond.

Further Strengthening Partnership

ADNOC GAS CEO Fatema Al Nuaimi said that this agreement marks a significant step in strengthening the company’s long-standing partnership with SEFE and reinforces ADNOC Gas’ role as a reliable and responsible global energy provider, committed to supporting Germany’s energy security.

“It also reflects the strong progress we are making in delivering our strategic objectives and demonstrates the confidence our partners, investors, and stakeholders place in our ability to create long-term value in a dynamic energy landscape,” she said.

The agreement builds on the ongoing strategic collaboration between the UAE and Germany, including the 2022 Energy Security and Industry Accelerator (ESIA) pact and the 2024 Joint Declaration with the state of Baden-Wurttemberg, both aimed at fostering energy security and sustainable fuel development.

Chief Commercial Officer of SEFE Frederic Barnaud said that over the past two decades, they have built a strong partnership with ADNOC, and value the relationship with such a reputable and reliable supplier.

“This new medium-term LNG contract builds on the long-term supply agreement with ADNOC that we signed last year, thereby adding another flexible source of LNG to our portfolio – to the benefit of both Europe’s security of supply and our global market trading activities,” Barnaud added.