In a groundbreaking move for the energy industry, major players Shell, BP, Mitsui, and TotalEnergies have all agreed to take a 10% stake each in the Abu Dhabi National Oil Company’s (ADNOC) Ruwais liquefied natural gas (LNG) project in the United Arab Emirates. This significant agreement marks a new chapter in the region’s energy landscape and promises to have far-reaching implications for global energy markets.
The Ruwais LNG project is slated to include two 4.8 million metric tonnes per annum (mmtpa) LNG liquefaction trains, boasting a total capacity of 9.6 mmtpa. Shell, operating through its subsidiary Shell International Trading Middle East Limited FZE, has further solidified its commitment to the project by signing an agreement to offtake 1 mmtpa of LNG produced by the facility. This move underscores Shell’s strategic vision for expanding its LNG portfolio and embracing energy-efficient and carbon-competitive projects.
One of the standout features of the Ruwais LNG project is its cutting-edge design, which includes an electric-powered liquefaction system and access to a renewable power supply. This forward-thinking approach is in stark contrast to traditional gas-powered LNG facilities and is expected to result in significantly lower operational emissions. ADNOC, as the majority shareholder with a 60% stake in the project, will spearhead the development and operation of the facility, while its partners Shell, BP, Mitsui, and TotalEnergies will each hold a 10% interest.
To bring the ambitious project to fruition, ADNOC has awarded an engineering, procurement, and construction (EPC) contract to a Technip-led joint venture. Construction is set to commence in Al Ruwais Industrial City, located approximately 240 kilometres west of Abu Dhabi in the UAE. The partners have indicated that LNG deliveries are slated to commence in 2028, signaling a pivotal moment for the region’s energy landscape.
Commenting on the investment decision, Shell’s Chief Executive Officer Wael Sawan emphasized the company’s commitment to creating value while reducing emissions. “This investment decision builds on our long-standing partnership with ADNOC. In line with our strategy to create more value with fewer emissions, we are investing in additional LNG capacity and further growing our world-leading LNG portfolio, with energy-efficient and carbon-competitive projects,” Sawan stated.
The collaboration between these industry titans underscores the growing importance of LNG as a key component of the global energy mix. As demand for cleaner and more sustainable energy sources continues to rise, projects like the Ruwais LNG facility are poised to play a crucial role in meeting these evolving energy needs. By leveraging innovative technologies and sustainable practices, the partners are not only enhancing their own competitiveness in the market but also contributing to a more sustainable energy future.
In conclusion, the agreement between Shell, BP, Mitsui, TotalEnergies, and ADNOC to participate in the Ruwais LNG project represents a significant milestone in the energy industry. With a shared commitment to sustainable energy practices and innovative solutions, these companies are poised to shape the future of the global energy landscape. The Ruwais LNG facility stands as a testament to the power of collaboration and innovation in driving positive change in the energy sector.