ADNOC Gas has finalised a supply agreement worth 1.5 billion dirhams with Germany’s SEFE Securing Energy for Europe, signalling a significant push to reinforce the energy partnership between the UAE and European markets. The three-year contract will see ADNOC Gas deliver 0.7 million tonnes of liquefied natural gas, with shipments commencing this year from the Das Island liquefaction facility.
The deal forms part of Europe’s broader strategy to diversify energy imports amid an ongoing overhaul of its gas supply framework. SEFE, a Berlin-based energy firm formerly known as Gazprom Germania, was nationalised in 2022 to ensure stable energy flows following a sharp decline in Russian gas deliveries. This latest deal with ADNOC Gas is among SEFE’s key moves to reinforce long-term energy security through non-Russian sources.
ADNOC Gas, a publicly listed unit of the Abu Dhabi National Oil Company, has steadily expanded its global footprint following its debut on the Abu Dhabi Securities Exchange in March 2023. The firm plays a central role in ADNOC’s strategy to monetise its natural gas reserves while also supporting the UAE’s ambition to become a reliable energy exporter amid volatile global gas markets.
The LNG will be exported from Das Island, a key hub for gas processing and liquefaction operations. Das Island serves as a strategic gateway for ADNOC Gas to access Asia-Pacific and European energy markets, with infrastructure capable of handling substantial volumes of LNG exports. The island’s facilities are known for their operational reliability and are regarded as a cornerstone of ADNOC’s upstream-to-market delivery model.
This deal builds on a series of international LNG supply agreements signed by ADNOC Gas this year, including contracts with clients in Asia and Europe. It reflects the UAE’s role in stabilising global energy markets by offering reliable alternatives to disrupted supply chains. The ongoing conflict in Ukraine and its cascading effects on European energy procurement have intensified demand for long-term LNG contracts from stable producers such as the UAE, Qatar, and the United States.
The agreement also underscores SEFE’s strategic pivot to build long-term LNG relationships outside the Russian sphere. The German energy company has increasingly turned to suppliers in the Middle East and the United States as it rebuilds its gas portfolio under state ownership. With LNG infrastructure in northern Germany being upgraded to accommodate higher import volumes, deals like this one with ADNOC Gas are seen as critical to bridging medium-term energy supply gaps.
LNG spot prices have moderated from the extreme highs of 2022, but volatility remains elevated due to tight supply-demand balances. European buyers are prioritising long-term contracts with fixed pricing to hedge against market instability and ensure consistent fuel flows for power generation and industrial usage. The UAE’s relatively lower production costs and strong delivery infrastructure make ADNOC Gas an attractive supplier under such contract structures.
The deal with SEFE also aligns with ADNOC Gas’ broader goal to increase LNG export capacity. The company is developing the Ruwais LNG project, a facility designed to double its current export volumes. Once operational, Ruwais will enable ADNOC to deliver LNG more efficiently to Europe and Asia, leveraging the port’s geographic location and enhanced logistical capabilities.
Europe’s LNG demand is forecast to remain elevated through the remainder of the decade, driven by structural shifts away from pipeline gas and coal. Germany, as the continent’s largest economy, has rapidly constructed floating storage regasification units and aims to have several operational by the end of this year. These facilities will support delivery schedules under the ADNOC-SEFE deal, providing Germany with added flexibility to absorb LNG cargoes from global suppliers.
