(Bloomberg) -- The United Arab Emirates’s biggest oil producer agreed to sell liquefied natural gas to a second German utility as it wraps up more supply contracts from a new export terminal it’s building.
Abu Dhabi National Oil Co. will supply 0.6 million tons of LNG annually to Germany’s EnBW Energie Baden-Wuerttemberg AG for 15 years starting 2028, according to a statement. Adnoc has preliminary deals with buyers from Europe to Japan for supply of the fuel and is converting those to definitive sales agreements.
The pact with EnBW is an example of Europe’s continuing dependence on fossil fuels. In November, Adnoc signed its first sales agreement to supply 1 million tons of LNG a year to Germany’s SEFE. The country fast-tracked LNG imports and snapped up seaborne cargoes after Russia curbed pipeline gas deliveries following its invasion of Ukraine, though it aims to shift to cleaner energy.
The UAE and other Middle Eastern states, are ramping up gas projects, seeing the fuel as a key bridge in the transition to greener sources. In addition to building the multibillion-dollar Ruwais LNG project, Adnoc has stakes in export facilities in the US and Africa. Saudi Arabia is also expanding domestic gas output and buying international export volumes and Qatar is in the middle of a massive LNG expansion.
The three Adnoc deals finalized so far are all for 15 years starting from 2028, with supply primarily from the Ruwais facility. Besides the two German deals, the Abu Dhabi company this month finalized a contract to supply 1 million tons a year of LNG to Malaysia’s Petronas.
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