June 22, 2024
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Germany’s EnBW signs 15-year LNG Contract with ADNOC

As Europe boosts LNG imports after Russia’s invasion of Ukraine curtailed westbound pipeline gas shipments, German utility company EnBW  signed a 15-year liquefied natural gas (LNG) contract with Abu Dhabi National Oil Company (ADNOC).

For EnBW, a south west German power and gas supplier, this step marks its first LNG contract with a Middle Eastern partner, which it said will help it diversify its procurement and speed the creation of an LNG value chain.

ADNOC has however, sharpened its focus on natural gas, seeing it as a transition fuel as the world tries to curb planet-warming emissions, and Russian supply cuts have boosted LNG demand.

ADNOC, is set to send 0.6 million metric tons per year to EnBW  from 2028, an EnBW press release said on Wednesday. As the company had in in March, committed to delivering LNG to EnBW’s German rival SEFE from its new Ruwais LNG project from 2028 onwards.

In December, ADNOC signed a 15-year LNG deal with a Singapore-based subsidiary of China’s ENN Natural Gas from Ruwais, which is set to be the first LNG export facility in the region to run on clean power. Ruwais is projected to deliver 9.6 million tons overall, EnBW said.

EnBW, did not give financial details of the agreement with ADNOC.

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