WORLD: The world’s oil giants are getting involved in a gigantic LNG project in the Emirates
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International oil majors such as Shell, BP and TotalEnergies, as well as Japan’s Mitsui & Co, have each agreed to buy 10 percent of a new giant LNG project in the United Arab Emirates, sources familiar with the situation told Bloomberg. .
International firms will invest in Abu Dhabi national oil company ADNOC’s Ruwais LNG project as Big Oil continues to bet on growing demand for natural gas and liquefied natural gas (LNG) in the coming years.
BP, TotalEnergies and Mitsui are currently partners in the UAE’s only existing LNG export facility, located on Das Island.
Last month, ADNOC made the final investment decision for the Ruwais LNG project, which will double the existing LNG production capacity in the UAE.
The Ruwais LNG plant will consist of two 4.8 million metric tonnes per annum (mmtpa) LNG liquefaction trains with a total capacity of 9.6 mmtpa. Thus, ADNOC’s existing LNG production capacity will be more than doubled to approximately 15 mmtpa, as the Emirati company builds its international LNG customer portfolio.
The project, located in Al Ruwais Industrial City in the Al Dhafra region of Abu Dhabi, will be the first LNG export facility in the Middle East and North Africa region (which will operate on clean energy, making it one of the LNG facilities with the lowest carbon intensity in the world, says ADNOC.
The Emirati state-owned energy giant has awarded the engineering, procurement and construction (EPC) contract for the project valued at around $5.5 billion.
ADNOC has bet big on LNG in recent months, seeking to expand domestic production and export capacity and buying minority stakes in LNG projects abroad, including in the United States.
In May, ADNOC bought an 11.7% stake in Phase 1 of NextDecade’s Rio Grande LNG export project in Texas, announcing its first strategic investment in the US. ADNOC also signed a 20-year LNG purchase agreement with Next Decade from Rio Grande LNG Train 4.
The Abu Dhabi group also announced in May the acquisition of a 10% stake in an LNG project off Mozambique, continuing to expand its international natural gas operations.
