Shell, bp, and TotalEnergies invest in ADNOC’s major Abu Dhabi LNG project

Energy majors Shell, bp, and TotalEnergies have signed agreements with state-owned Abu Dhabi National Oil Company (ADNOC) to acquire a 10% equity stake each in the 9.6m t/y Ruwais LNG project. Global trading and investment company Mitsui & Co will also take on a 10% share, while ADNOC will retain 60%.

Separately, ADNOC signed several off-take agreements with international partners, including for the delivery of 1m t/y to Shell and 600,000 t/y to Mitsui & Co. This takes the project’s committed LNG production to 70%. The deals were signed as ADNOC met with the heads of global energy companies to discuss the future of the sector and pursue international collaboration.

Under development in Abu Dhabi’s Al Ruwais Industrial City, the Ruwais LNG project will comprise two 4.8m t/y LNG liquefaction trains for a total capacity of 9.6m t/y. It will more than double ADNOC’s LNG production in the United Arab Emirates (UAE) to around 15m t/y.

It is expected to be one of the world’s lowest-carbon intensity projects and the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, using fully electrified liquefaction trains supplied with clean energy from the UAE grid. The project will also use the latest technologies and artificial intelligence (AI) to enhance safety, drive efficiency, and minimise emissions.

Patrick Pouyanné, chairman and CEO of TotalEnergies, said: “Last year at COP28, TotalEnergies and ADNOC both committed to lead the Oil & Gas Decarbonization Charter to reduce the industry’s greenhouse gas emissions. With Ruwais LNG, we are putting this principle into practice with one of the world’s lowest-carbon intensity LNG plants, allowing natural gas to fully play its role of transitional fuel.”

ADNOC, lead develop and operator, reached a final investment decision on the project in June. Construction on the project will begin “soon” with LNG deliveries expected to start in 2028.

Al Jabar said: “As natural gas demand continues to increase, this world-class project will enable us to provide more lower-carbon gas to meet growing demand today while helping the world transition to a cleaner energy future.”

In its 2024 LNG outlook, Shell estimated that annual demand will increase by more than 50% by 2040, driven by a coal-to-gas switch in China, South Asian and Southeast Asian countries. According to the report, global trade in LNG increased to 404m t/y in 2023, from 397m t/y in 2022.