Shell, TotalEnergies, BP and Mitsui to Each Take 10% Stake in Ruwais LNG
Shell, TotalEnergies, BP and Mitsui will each take a 10% stake in the Abu Dhabi National Oil Company’s (ADNOC) Ruwais liquified natural gas (LNG) project in the UAE.
ADNOC will retain a 60% stake and serve as the lead developer and operator in the project.
Ruwais LNG is a two-train, 9.6 million-tons-per-year megaproject located in the industrial city of Ruwais some 240 kilometers west of Abu Dhabi. The project is expected to nearly triple the UAE’s existing LNG production capacity, with start-up slated for the second half of 2028.
Ruwais is being billed as the Middle East and North Africa’s (MENA) first LNG export facility to run on clean power. It will also leverage AI and advanced technologies to bolster safety and operational efficiency.
“We are delighted to welcome BP, Mitsui & Co., Shell and TotalEnergies as partners in ADNOC’s Ruwais LNG project, which will be one of the world’s lowest carbon-intensive LNG facilities,” said Dr. Sultan Ahmed Al Jaber, managing director and group CEO of ADNOC.
“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. Additionally, the project will accelerate development in Al Ruwais Industrial City, boost the local industrial ecosystem and create more skilled private sector jobs for UAE Nationals.”
Consultancy Wood Mackenzie said the involvement of the IOCs was unsurprising given the project appeals on “multiple levels”.
Its advantages include proximity to both European and Asian markets, its relatively low emissions that align with the partners’ climate strategies and its reduced development risk given ADNOC has already announced its final investment decision (FID).
The project will also create a new supply source for buyers: “The majority of new large-scale global supply is from the US and Qatar. Ruwais offers an alternative source of supply,” Wood Mackenzie said.
Shell, which has also signed an agreement to offtake one million tons per year of LNG produced by the project, said global demand for LNG is estimated to rise by more than 50% by 2040 as industrial coal-to-gas switching gathers pace in China, South Asia and Southeast Asia.
Shell, TotalEnergies, BP and Mitsui are members of the Breakbulk Global Shipper Network.
ADNOC Logistics & Services is an exhibitor at Breakbulk Middle East.
