By: Oil & gas middle east

Germany’s SEFE has agreed a three-year deal with the United Arab Emirates’ ADNOC to receive around 700,000 metric tonnes of liquefied natural gas (LNG), with deliveries set to begin in the summer of 2025, according to a report by Reuters.

The agreement, worth $400 million, will draw on ADNOC’s Das Island liquefaction facility and is part of both companies’ plans to deepen long-term relationships with key energy partners, Reuters reported, citing a joint statement issued by the companies.

As stated by Reuters, the deal grants SEFE the flexibility to choose delivery destinations at its discretion. SEFE, short for Securing Energy for Europe, is a state-owned entity that has been actively pursuing long-term supply contracts after losing most of its Russian pipeline gas imports in 2022.

According to Reuters, SEFE Chief Commercial Officer Frederic Barnaud said the new contract builds on an earlier long-term supply agreement signed with ADNOC last year.

Reuters noted that SEFE was formerly part of Russia’s Gazprom before being nationalised by Germany during Europe’s energy crisis. The company currently has obligations to deliver about 200 terawatt hours of gas per year to industrial users and distributors, primarily across Germany, Britain, and other European markets. Last month, SEFE also entered into a 10-year gas delivery agreement with Azerbaijan’s state oil company SOCAR, Reuters added.