Abu Dhabi National Oil Company (ADNOC) has signed agreements with industry majors BP, Mitsui & Co., Shell and TotalEnergies under which each will take a 10% equity stake in what will be the first liquefied natural gas (LNG) export facility in the Middle East and North Africa (MENA) region to run on clean power, with ADNOC retaining 60%, Report informs referring to Offshore Energy.
The Ruwais LNG project is currently under development in Al Ruwais Industrial City, Al Dhafra, Abu Dhabi, and will leverage the latest technologies and artificial intelligence (AI) to minimize emissions and drive efficiency.
The project consists of two 4.8 million tonnes per annum (mtpa) LNG liquefaction trains with a total capacity of 9.6mtpa and is expected to more than double ADNOC’s UAE LNG production capacity to around 15 mtpa.
The participation of BP, Mitsui & Co., Shell and TotalEnergies is subject to customary regulatory clearances.
Separately, ADNOC has signed several new long-term LNG sales commitments with international partners, including for the delivery of 1 mtpa with Shell and 0.6 mtpa with Mitusi & Co., taking the committed Ruwais LNG production capacity to 70%.
The partnership builds on the final investment decision (FID) for the Ruwais LNG project, endorsed by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Chairman of the Abu Dhabi Executive Council and Chairman of the Executive Committee of the Board of Directors of ADNOC, last month.
The FID came after the signing of a 15-year, 0.6 mmtpa LNG supply heads of agreement for the project between ADNOC and EnBW, which was the third long-term LNG supply agreement for the project, coming after the second such supply agreement from March 2024 with SEFE and the first 15-year HOA with China’s ENN Natural Gas from December 2023.
The agreement was signed by Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO, Murray Auchincloss, BP’s CEO, Kenichi Hori, President and CEO of Mitsui & Co., Wael Sawan, Shell CEO, and Patrick Pouyanné, Chairman and CEO of TotalEnergies.