2024-03-18 09:46:49
ADNOC announced today the signing of the main terms of the “Liquefied Natural Gas” agreement to supply one million tons annually of liquefied natural gas for a period of 15 years with the “Sivi” Trading and Marketing Company “Singapore – PTI Limited”, a subsidiary of the “Sivi” insurance company. “Energy for Europe” – German GmbH (SEVI).
The shipments will be sent primarily from ADNOC’s Ruwais low-emission liquefied natural gas project, which is currently being developed in the Ruwais Industrial City in Abu Dhabi, and is designed to run on clean electricity, and takes advantage of the latest technologies and artificial intelligence tools to increase the efficiency of its operations.
The announcement of this agreement comes following a previous agreement announced in December 2023 with the Chinese company “ENN” for the same period and quantity.
It is expected that export cargoes will begin once the facility begins commercial operations, expected in 2028, helping to diversify natural gas supplies in Germany.
Fatima Al Nuaimi, Executive Vice President of Gas Processing, Refining and Petrochemicals at ADNOC, said: “This agreement to supply gas from the Ruwais low-emission liquefied natural gas project, which is the first of its kind with a European company, strengthens ADNOC’s position as a reliable and responsible global energy provider covering… Gas accounts for nearly a quarter of Germany’s primary energy use, and we look forward to supporting its efforts to enhance energy security and diversify its sources.”
This agreement to supply liquefied natural gas reinforces the implementation of the “Strategic Agreement for Cooperation in the Field of Energy Security and Industrial Growth Accelerators – ESIA – signed by the UAE and Germany in 2022, which supports bilateral cooperation between the two countries in the areas of energy security, emissions reduction, and low-carbon fuels. It is also based on ADNOC’s delivery of the first shipment of liquefied natural gas from the Middle East to Germany in 2023.
Frederic Barnouw, CEO of Sivvi Marketing and Trade Company and Chief Operating Officer, said: “Sivvi and ADNOC have a long and fruitful partnership that extends for more than 15 years, and the agreement represents the supply of liquefied natural gas from the Ruwais project, which is planned to be one of the least expensive LNG projects. “In terms of global carbon emissions intensity, this is the beginning of a new chapter for our partnerships, and we aim to continue building on this partnership and explore more joint projects in the field of low-carbon energy.”
Natural gas plays a pivotal role as a transitional fuel, due to its low carbon emissions compared to other types of fossil fuels. This project is the first export facility in the Middle East and North Africa region that operates with clean electricity. Upon completion, it will consist of two natural gas liquefaction lines, each with a production capacity of 4.8 million tons annually and a total capacity of 9.6 million tons annually. It will contribute to raising the targeted production capacity of ” ADNOC’s supply of liquefied natural gas more than doubled to meet the growing global demand for this vital resource. The project was designed to take advantage of the latest technologies, artificial intelligence tools, and digital transformation to increase the efficiency of its operations and enhance safety standards across all its facilities.
It is noteworthy that the implementation of the agreement is linked to making the final investment decision for the project, including obtaining regulatory approvals, and the progress of negotiations to reach a final sale and purchase agreement between the two companies.
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