Energy giants to take 40% of Adnoc LNG plant

Reuters/Christopher Pike

• Al Ruwais project being developed
• Total, Shell and BP among stakeholders
• LNG demand expected to grow

Energy giants from France, the UK and Japan are expected to take stakes in the Ruwais liquefied natural gas project, run by Abu Dhabi National Oil Company.

TotalEnergies, Shell, BP and Mitsui are expected to each take 10 percent of the project, which received a final investment decision last June.

The Al Ruwais plant will boost the UAE’s LNG export capacity almost threefold to 15 million tonnes a year (mtpa) by 2028, from the current 5.8 mtpa.

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It is intended to run on clean power while cutting methane leaks to a minimum.

TotalEnergies, BP and Mitsui are already partners in the UAE’s existing LNG plant, on Das Island.

• Abu Dhabi bets big on LNG

• Adnoc strikes LNG supply deal with Germany

• Adnoc starts work on ‘green’ LNG plant at Ruwais

Adnoc has already awarded a $5.5 billion engineering, procurement and construction contract for Al Ruwais.

The company has been building its LNG portfolio alongside its regional neighbours Saudi Aramco and QatarEnergy.

Natural gas is seen as an important part of the energy transition from fossil fuels to renewable energy sources.

In May Adnoc bought 10 percent of an LNG project in Mozambique from Portugal’s Galp.

It has also bought an 11.7 percent stake in NextDecade’s Rio Grande LNG project in Texas and agreed to take 2 million tonnes a year of LNG from the plant. 

Although prices have softened from a spike after Russia’s invasion of Ukraine, LNG demand is forecast to grow in the coming years.

Shell, the biggest LNG producer, sees demand growing by more than 50 percent by 2040.

The UAE will remain a much smaller LNG producer than Qatar, even with Adnoc’s Al Ruwais project, reaching a capacity of 142 million tonnes by 2030. 

QatarEnergy also has a 70 percent stake in the 18 million tonne Golden Pass project in Texas.