HomeNewsADNOC's Ruwais LNG to earmark 40% stake to Shell, Total, bp, Mitsui

ADNOC's Ruwais LNG to earmark 40% stake to Shell, Total, bp, Mitsui

7/5/2024

Abu Dhabi National Oil Co. (ADNOC) has earmarked a 40% stake in its Ruwais liquefied natural gas (LNG) project to four energy majors: Shell, TotalEnergies, bp and Japan's Mitsui.

The four companies are expected to get a stake of 10% each in the project, which will more than double UAE's output of the sea-borne fuel and is expected to produce about 9.6 metric MMtpy by late 2028.

Sources say that ADNOC plans to assign another 5% stake to another partner, without giving details.

ADNOC has also allocated 2 MMtpy to shareholders, another source said, and the companies are expected to get the offtake at a lower price compared to the market, but with less flexibility.

ADNOC, Shell, bp and TotalEnergies declined to comment. Mitsui did not immediately respond to request for comment.

The project, which has received final investment decision for in June, is expected to be key for Shell and TotalEnergie's Middle East-Asia LNG trade.

The state oil giant has big ambitions in gas and LNG, which along with renewable energy and petrochemicals, it sees as pillars for its future growth. It currently produces around 6 MMtpy of LNG and aims to lift its capacity to 15 MMtpy.

As demand for natural gas spiked following Russia's invasion of Ukraine, several Gulf countries have looked to capitalize. Qatar this year announced a further expansion of its North Field project that will cement it as one of the world's top LNG exporters.

ADNOC has already signed supply deals with Germany's EnBW and Securing Energy for Europe (SEFE), as well as China's ENN Natural Gas.

The project is expected to be the region's first LNG export facility to run on clean power.

 

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