Adnoc awards $5.5bn contract for Ruwais LNG

Reuters

Abu Dhabi state oil company Adnoc has awarded a AED20.2 billion ($5.5 billion) engineering, procurement and construction contract for its low-carbon intensity Ruwais liquefied natural gas project.

A joint venture led by Technip Energies, with JGC Corporation and NMDC Energy, won the contract after approval by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, crown prince of Abu Dhabi and chairman of the Abu Dhabi Executive Council.

The energy giant has also approved the long-awaited final investment decision for the scheme. This is a crucial phase in which a company allocates financial resources to proceed with project execution.

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The Ruwais facility will have two 4.8 million tonnes per year (mpta) LNG liquefaction trains, more than doubling Adnoc’s existing LNG output to 15 million mtpa.

The LNG export facility will be the first in the Middle East and North Africa region to run on clean power. It will also help Abu Dhabi become the second-largest LNG supplier after Qatar in the Middle East.

Under Adnoc’s in-country value programme, 55 percent of the engineering, procurement and construction award value of Ruwais LNG will flow back into the UAE’s economy, driving industrial growth and private-sector jobs for locals.

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Wood Mackenzie, a data and analytics business based in Edinburgh, has predicted that the Middle East will spend up to $120 billion by 2030 to boost its natural gas production.

Raad Alkadiri, non-resident fellow at the CSIS Energy Security and Climate Change Program, told AGBI in March that Adnoc’s LNG expansion fits with its aggressive business diversification plan.

“It is about securing multiple revenue streams rather than relying solely on oil and committing early to hydrocarbons, leaving others to worry about falls in demand,” he said.