UAE oil giant ADNOC plans to allocate 40% of the Ruwais LNG project, the Middle East and North Africa’s first clean energy LNG export facility, to four international oil companies.
According to data reviewed by the Washington-based Energy Platform, the companies that the Abu Dhabi National Oil Company has granted 40% of the giant gas project include Shell, BP, TotalEnergies of France, and Mitsui of Japan.
The four companies are expected to each have a 10% stake in the project, which will double the UAE’s LNG production, with an expected output of around 9.6 million tonnes per year by late 2028.
The Ruwais LNG project is set to be powered by clean electricity generated from renewable and nuclear energy sources, and will leverage the latest technologies and AI tools to reduce emissions and increase efficiency, making it one of the world’s least carbon-intensive LNG facilities, according to ADNOC.
New partnership
UAE’s ADNOC plans to allocate another 5% stake to another partner, Reuters reported. Reuters.
ADNOC has also allocated 2 million tonnes per year to shareholders, and companies are expected to receive tenders at a lower price compared to the market, but with less flexibility.
The project, which received its final investment decision in June, is expected to be a key component of Shell and TotalEnergies’ LNG trade in the Middle East and Asia.
ADNOC headquarters – Archive
ADNOC has major ambitions in gas and LNG, which it sees, along with renewable energy and petrochemicals, as pillars of its future growth.
The company currently produces regarding 6 million tons per year of liquefied natural gas, and aims to raise its capacity to 15 million tons per year.
Ruwais LNG Project
The Ruwais LNG project consists of two natural gas liquefaction trains with a production capacity of 4.8 million tons per year (6.52 billion cubic meters) each, for a total of 9.6 million tons per year (13.05 billion cubic meters).
The Ruwais LNG facility is scheduled to come online in 2028, helping to boost ADNOC’s gas production capacity to 15 million metric tons per year (20.4 billion cubic meters), more than doubling the current total of 6 million metric tons per year (8.16 billion cubic meters).
In recent months, ADNOC has successfully signed long-term export deals from the project. In December 2023, it signed the main terms for the supply of at least one million tons per year (1.36 billion cubic meters) of LNG for 15 years, with Singapore-based ENN LNG, owned by one of China’s largest private energy companies.
The second export deal was signed in March 2024, with Seve Trading and Marketing (based in Singapore), a subsidiary of the German company Seve.
The agreement includes the supply of one million tons per year (1.36 billion cubic meters) of liquefied natural gas for 15 years from the low-emission Ruwais LNG project, with the facility contributing to the diversification of Germany’s natural gas supplies.
In May 2024, ADNOC signed a third export agreement with Energie Baden-Württemberg (EnBW), one of Germany’s largest energy companies, to export 600,000 metric tons per year (0.816 billion cubic meters) of LNG for 15 years.
The following infographic, prepared by the specialized energy platform, reviews the most important data and information regarding the Ruwais LNG project:
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ADNOC’s Ruwais LNG Project: A Clean Energy Milestone
UAE’s ADNOC Unveils Partnership for Ruwais LNG Project
UAE’s oil giant, ADNOC, is set to allocate 40% of its Ruwais LNG project to four international oil companies.
This project marks the Middle East and North Africa’s first clean energy LNG export facility. The Energy Platform, a Washington-based research group, reports that ADNOC has granted 10% stakes each to Shell, BP, TotalEnergies (France), and Mitsui (Japan).
The Ruwais LNG project is projected to double the UAE’s LNG production, reaching an estimated output of 9.6 million tonnes per year by late 2028. ADNOC emphasizes the project’s commitment to clean energy, utilizing electricity generated from renewable and nuclear sources to power the facility.
A Focus on Clean and Efficient Operations
The Ruwais LNG project integrates cutting-edge technologies and AI tools to reduce emissions and enhance efficiency, aiming to become one of the world’s least carbon-intensive LNG facilities.
New Partnership Emerges
According to Reuters, ADNOC is also planning to allocate an additional 5% stake to another strategic partner.
Shareholders’ Benefits
ADNOC has allocated 2 million tonnes per year of LNG to its shareholders, offering them a price advantage compared to market rates but with some limitations on flexibility.
Key Significance for Shell and TotalEnergies
The Ruwais LNG project is projected to play a pivotal role in Shell and TotalEnergies’ LNG trading activities in the Middle East and Asia.
ADNOC’s Ambitions in Gas and LNG
ADNOC’s ambitious plans in the gas and LNG sector view these areas as central pillars for future growth alongside renewable energy and petrochemicals. With a current annual LNG production of 6 million tons, ADNOC aims to increase its capacity to 15 million tons per year.
Ruwais LNG Project: A Detailed Overview
The Ruwais LNG project encompasses two natural gas liquefaction trains, each boasting a production capacity of 4.8 million tons per year (6.52 billion cubic meters), resulting in a combined output of 9.6 million tons per year (13.05 billion cubic meters).
Boosting Production Capacity
The Ruwais LNG facility, scheduled to come online in 2028, is expected to significantly boost ADNOC’s gas production capacity to 15 million metric tons per year (20.4 billion cubic meters). This represents a more than doubling of the current annual production of 6 million metric tons per year (8.16 billion cubic meters).
Securing Long-Term Export Deals
ADNOC has secured several long-term export agreements for the Ruwais LNG project. In December 2023, ADNOC signed a 15-year deal with ENN LNG, a subsidiary of one of China’s largest private energy companies, to supply at least one million tons per year (1.36 billion cubic meters) of LNG.
In March 2024, a second export agreement was reached with Seve Trading and Marketing, a Singapore-based subsidiary of Seve (Germany), for the supply of one million tons per year (1.36 billion cubic meters) of LNG for 15 years.
A third export agreement was signed in May 2024 with Energie Baden-Württemberg (EnBW), one of Germany’s largest energy companies, to export 600,000 metric tons per year (0.816 billion cubic meters) of LNG for 15 years.
Ruwais LNG Project: A Key Energy Milestone
The following infographic provides a summary of key facts and information pertaining to the Ruwais LNG project:
| Feature | Details |
|---|---|
| Project Name | Ruwais LNG Project |
| Location | Ruwais, UAE |
| Production Capacity | 9.6 million tonnes per year |
| Start Date | Late 2028 |
| Partners | Shell, BP, TotalEnergies, Mitsui, and other unnamed partner |
| Energy Source | Clean electricity from renewable and nuclear sources |
| Technology | Latest technologies, AI tools |
| Environmental Focus | Low-carbon LNG facility |
| Expected Impact | Will double UAE’s LNG production |
Ruwais LNG Project – A Catalyst for Global Energy Transition
The Ruwais LNG project stands as a significant milestone in the global energy transition, demonstrating a commitment to clean energy and sustainable development. With its focus on low-carbon emissions and advanced technology, the project is poised to play a vital role in meeting growing global demand for LNG while minimizing environmental impact.
