UAE’s Adnoc and Germany’s RWE have signed a supply deal on the first commercial LNG delivery to the Brunsbuettel FSRU-based import terminal. The two firms also signed a memorandum of understanding for further LNG deliveries.
According to a statement by RWE issued on Sunday, Adnoc would deliver the LNG shipment from the 6 mtpa Das Island plant off the coast of Abu Dhabi to the Elbehafen LNG terminal at Brunsbuettel, near Hamburg, in late December.
Moreover, the cargo would have 137,000 cubic meters of LNG and would be the first LNG to be supplied to the German gas market via the floating LNG import terminal at Brunsbuettel, RWE said.
“This marks an important milestone in building-up an LNG supply infrastructure in Germany and setting-up a more diversified gas supply,” the Germany energy firm said.
Additional LNG supplies
Besides this LNG cargo, Adnoc and RWE have signed a memorandum of understanding on multi-year LNG supplies where cargoes would be delivered to Germany starting from 2023, RWE said.
LNG supplies from Adnoc can be delivered to Germany through either floating or land-based regasification terminals as these become operational, according to RWE.
This deal marks Adnoc’s first LNG agreement with German customer.
The firm owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.
Besides this terminal, Adnoc is also working on the second LNG export plant in Fujairah.
According to Adnoc, the Fujairah LNG terminal would have two 4.8 mtpa LNG trains, boosting the company’s LNG production capacity by 9.6 Mtpa, as it looks to respond to the growing global demand for natural gas.
German LNG imports
In August, Germany signed a memorandum of understanding with RWE, Uniper, EnBW, and VNG for the supply of LNG to two FSRU-based LNG import terminals in Brunsbuettel and Wilhelmshaven.
Germany currently does not have LNG import terminals. The country is moving quickly with its plans to build infrastructure and become a major LNG importer, and has chartered five FSRUs.
These vessels include the two units RWE chartered from Hoegh LNG, the Dynagas-owned 174,000-cbm Transgas Force and Transgas Power that will go on charter to Uniper, and Excelerate’s FSRU chartered by Engie, TES, and E.ON.
Besides Brunsbuettel and Wilhelmshaven, these units will be placed in Stade and Lubmin as well.
Germany, Uniper, and RWE are now focusing on the Elbhafen LNG terminal in Brunsbuettel and the Wilhelmshaven LNG terminal as these two facilities with a capacity of up to 12.5 bcm per year should go online by the end of this year.