The Emirati oil and gas group Adnoc announced the signing of a liquefied natural gas (LNG) supply contract with the German company Securing Energy for Europe GmbH (SEFE). This contract, lasting 15 years, provides for an annual delivery of one million tonnes of LNG from 2028. The agreement was concluded with the subsidiary SEFE Marketing and Trading Singapore, marking a significant step in securing of Germany’s energy needs.
Germany, which is increasingly dependent on LNG for its energy needs, sees this partnership as a major step towards diversifying its sources of supply. Indeed, LNG represents more than a quarter of Germany’s energy supply, hence the importance of this new agreement for the country. According to Fatema Al Nuaimi, one of Adnoc’s directors, “natural gas is a pillar of Germany’s energy security, and this agreement reflects our commitment to supporting this security in a sustainable way. »
A low-carbon project
Gas delivered under this agreement will come from the site under development at Ruwais, located 250 kilometers west of Abu Dhabi. This LNG project is presented as one of the most environmentally friendly, with low carbon intensity compared to other production sites. This particularity gives Adnoc an advantage in a market where the energy transition is increasingly crucial.
The Ruwais plant, once fully operational, is expected to produce approximately 9.6 million tonnes of LNG per year. To date, more than 7 million tonnes of this production have already been subject to long-term sales contracts, strengthening Adnoc’s position as a major supplier of LNG to various international markets, including Europe. .
SEFE: a pillar of German energy security
Securing Energy for Europe GmbH (SEFE) comes from the former German subsidiary of the Russian gas giant Gazprom. Nationalized in November 2022 following the invasion of Ukraine and the cessation of Russian gas deliveries, SEFE has established itself as an essential player for Germany’s energy security. The company, saved from bankruptcy by the German state, has the mission of guaranteeing a stable supply of gas for the country and Europe.
SEFE Managing Director Egbert Laege highlighted the importance of this partnership with Adnoc, saying that this collaboration “supports efforts to responsibly diversify Germany’s energy sources and strengthen energy security for the whole of Europe”. This project marks a crucial strategic diversification for SEFE and the German government, in search of reliable suppliers beyond Russian borders.
A strategic partnership for Europe
The agreement between Adnoc and SEFE comes in a context of energy tensions in Europe, exacerbated by geopolitical crises. With this agreement, Germany and, by extension, Europe, solidify their energy relations with the United Arab Emirates. The signing of this contract also reflects a desire for a long-term partnership between Europe and the Middle East to respond to the challenges of energy transition and security of supplies.
By expanding its energy cooperation with a major player like Adnoc, Germany hopes to provide itself with increased resilience in the face of possible disruptions in the gas market. This partnership could also pave the way for other similar agreements in Europe, as the continent seeks to stabilize its supplies of energy resources.
